EURUSD on the verge of a breakout

OIL ready for a small correction
August 20, 2013
Longer term up trend will be challenged for US markets
August 22, 2013

EURUSD is challenging the 1,34 level and it seems that it has the power to break it. Yesterday prices managed to make a peak above 1,34 near 1,3450 and today is back testing the broken resistance. EURUSD is moving upwards in an pattern. Trend in all time frames is up and it seems that on a daily level prices are trying to break out of a longer term sideways consolidation pattern.

eurusdd

As shown in the daily chart above, prices seem ready to confirm the break of the green downward sloping trend line. Additionally the 1,34 is also a triple top price level as shown in the 2 hour chart below and breaking above it could re-energize bulls and push prices towards 1,36-37.

EURUSD2H

Short term support is found at 1,3350 and then at 1,3280. Short term resistance is found at 1,3427 and 1,3460. We favor bullish positions above 1,3427 as this could enable more buyers support the bullish trend that this pair is currently in.  Breaking below 1,3350 could put the entire bullish scenario in danger as another rejection at 1,34 could prove fatal for any chance of an upward move bulls may have.

For more help trading this pair, don’t hesitate to contact us. As always, thank you for taking the time to read my new post.

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Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.