Euro Dollar Analysis : Upward bias

The sideways correction with a slight upward slope, continues. Previous lows were not exceeded when the market printed a short term low at 1.4044 on August 17th. The market is in a relatively weak uptrend.

At this moment EURUSD is range bound between the August 17th low and the August 15th high of 1.4446. That high, marked R1 on the chart, is being tested right now.

Recent price action implies that resistance at R1 may be penetrated soon, but because resistance is strong, that cannot be predicted with absolute certainty.

What is expected, is that the market will eventually reach higher objectives as mentioned in last month’s commentary. Near term objectives are between 1.4490 – 1.4690.

Failure to exceed 1.4446 in the near future could send this currency pair down towards support around 1.4044.


Daily Eur/Usd chart as at 28 August 2009 using NextVIEW Advisor. Click on chart for larger view.

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Article and Commentary by Don Schellenberg. A trader and trading coach, he is a noted expert on Market Structure, Elliott Wave and Fibonacci. He trades the forex market.