Technical Trading Tips and Techniques by 
Phenomenal bullishness on the EUR/USD ( a daily chart of which is shown) that was further fueled by the Fed rate cut to a record low level, has quieted the dollar bulls at least for the time being. To put the recent bullish run in perspective, when measuring the plummet that occurred from the all-time high just above 1.6000 in July to the recent 2-1/2 year low around 1.2330 in late October, bullish price action from the last few weeks has retraced approximately 50% of the plummet (as of early Wednesday morning in New York). Any continued bullishness could target the 1.4300 region to the upside, a significant prior support/resistance level. Likely, however, we should soon be seeing a consolidation or retracement within the current bullish run.
UPDATE: Needless to say, the EUR/USD continued its bullish march, hitting a high of 1.4435 before retracing back down just above the 1.4300 region as of Wednesday mid-afternoon in New York. To the upside, we have the 1.4550 resistance target. On the downside, there is support around the 1.4200 zone. In all likelihood, this bullish run is not over, but consolidation and retracement should now be in order.
Hi James,
Can we expect the pair to hit the 1.60 regions on the back of any Big 3 bail out announcements?
Thanks,
Bill
TA of last resort for the bears(me included) EURUSD at the 200 MA on the daily
eurusd just jit 1,4717 today….bullishness it is!
Hi Bill, Bogdan, and Chris,
Thanks for your comments! Yes, indeed, it’s difficult to deny the bullishness and uptrend at this time. But not so sure about 1.6000, at least for the near-term foreseeable future. I will be posting additional commentary momentarily. Thanks again for the comments!
James Chen
[...] of the last week or so, this retracement, or at least a consolidation, was to be expected (as noted here on Wednesday’s blog post). Further bearishness on this retracement below the 1.3880 level could target support around the [...]