Euro Confined to Inside Day Despite Thursday Rally (Daily Classical)

Published June 11th, 2009 - 09:05 GMT
Al Bawaba
Al Bawaba





EUR/USD


EUR/USD – The latest rebound has stalled out by the 61.8% fib retracement off of the 1.4340-1.3805 move and former support turned resistance in the 1.4100 area, and a fresh lower top could now be in place ahead of the next drop through 1.3800. A closer look at an 8-hourly chart, shows the formation of a major head & shoulders top, that if triggered, would ultimately project a more significant decline back towards a measured move objective by 1.3250 over the coming weeks.  Only back above Wednesday’s high at 1.4145 delays. Despite the bullish price action on Thursday, the market is still confined to an inside day. Strategy: SIDELINED FOR NOW; LOOK TO SELL.

Level

Resistance

Details

1.4270

R3

6/5 high

1.4245

R2

6/4 high

1.4145

 R1 

6/10 high

Level

Support

Details

1.3945

S1

6/11 low

1.3900

S2

Figure

1.3850

S3

6/9 low



USD/JPY



USD/JPY – The break of shorter-term trend-line resistance off of the 2009 highs last Friday likely opens the door to additional upside over the medium-term, with any setbacks now seen well supported on dips to 97.00, which acts as previous resistance now turned support. Look for a higher low to carve out in the lower 97.00’s ahead of fresh upside over the coming days back above 98.90 and towards the more critical falling trend-line resistance just over 100.00. Strategy: SIDELINED FOR NOW; LOOK TO BUY.

Level

Resistance

Details

99.75

R3

5/7 high

98.90

R2

6/5 high

98.60

 R1 

6/9 high

Level

Support

Details

97.10

S1

6/9 low