The pair managed to hold well above the 1.4000 and 1.4050 after breaking up above the 1.4000 area. News has it that, signs of recovery is near and that the world would finally see light at the end of the tunnel. We might see EU breaking up above the triangle in the daily chart next week to retest the high at 1.4350. But before that, the hurdle at
1.4150 must be taken out convincingly 1st for the pair to move up further.
do take note that price had not closed above the 1.4150 in the daily since it first rallied through the area on June 1st 2009. So in my view, this area would be heavily monitored prior to
1.4200.
Price broke an important support yesterday at 1.4150. if price continues to find resistance at the 1.4150/1.4100 area a deeper downmove might manifest. keep a close watch on the R at 1.4100-1.4150
On the whole the bear trend in the pair still persists, but its now near important support. Strong selling interest might be needed to push the pair below the current level of support. The G8 meeting will be ongoing for these 3 days. Do expect sharp and fast moves in the market. Extra caution is needed to trade these kinda situation.
The "double whammy" day came and gone, NFP seems to paint a rather gloomy picture yet on economic recovery. Market participates took this as an excuse to cut back on riskier assets, thus the fall on EU today to retest the 1.4000 support. Price might range above 1.4000 at the moment. If we do see a clear break at this area, price will target 1.3900 and subsequently the 1.3800 area.
