EUR/USD attempts another advance
James Chen April 9, 2014 8:39 PM
<p>EUR/USD (daily chart shown below) has rebounded once again from the key 1.3700 support area to emerge above its 50-day moving average. This rebound occurs […]</p>
EUR/USD (daily chart shown below) has rebounded once again from the key 1.3700 support area to emerge above its 50-day moving average.
This rebound occurs after the currency pair recently made a 2% pullback from its long-term high of 1.3965 that was established almost four weeks ago.
Since the current bullish trend began from the 1.2750-area double-bottom low in July 2013, price action has dipped below its 50-day moving average on at least four separate occasions, only to recover and establish new highs each time.
The current dip and rebound could present more of the same.
Major downside support continues to reside around the noted 1.3700-area, at least for the short-term.
If the pair is subsequently unable to hold this key level, further downside support within the current bullish trend resides around the 200-day moving average and then the major 1.3500 support area.
In the event of further upside momentum off the current rebound, the key level to watch remains around the noted 1.3965 high.
On any breakout above that important level, an uptrend continuation will have been confirmed with further upside targets around the 1.4000 and 1.4250 resistance levels.
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