Approaching the New Year, a trading range consolidation has settled in for most of the majors. This includes the EUR/USD (a daily chart of which is shown), which, after pulling back to and bouncing up off a key 38.2% retracement level within the overall uptrend, has wavered in a rough sideways trading range for the past week. For the beginning of 2009, a strong break above the 1.4700 level should presage a potential uptrend continuation off the pullback. A substantial drop below the 1.3800 region, on the other hand, would invalidate the pullback and could be a sign of a long-awaited dollar recovery.
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