Saturday, June 12, 2010
Forex Chartist Technical Analysis :-
Euros have made gains to 1.2149
Euros have made gains to 1.2149. Now you have resistance at 1.2160 and only a break above here would the market be in a position to trade higher. Now we have broken above a small downtrend line at 1.2115 and this is quite a positive signal for this market. Technical stochastics on both the 60min and med term charts have turned positive and if we can break the 1.2160 resistance this should come sharply higher for 1.2235 initially. Here it is prudent to cover all longs. Re-instate above 1.2240 as a break above here triggers move to 1.2325/35 which again offers good resistance.
No if sellers guard 1.2160 jealously and will not admit defeat, buyers may well back away from these higher for the first time, and look to regroup at lower levels of 1.2115/11. If we can hold this support I would expect the buyers to then gather the troops and charge for the 1.2160 with all intensions of breaking past it.
Obviously a loss of 1.2100 sees 1.2060/43 once more where defeated buyers should be waiting.