Monday, May 09, 2011

EURUSD Uptrend Correction

As noted in a previous post, EURUSD moved higher and reversed just shy of the 1.5 target last week. The correction was harsh but the uptrend is intact as shown in the updated weekly chart above.

In the daily chart below we notice that EURUSD broke the uptrend correcting right on the cyclic time. Nevertheless, the area in the 1.40 -1.43 should prove strong support for the longer term uptrend and a base for a new leg higher to challenge the recent highs. A break below 1.40 is bearish medium term.

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