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EUR/USD - Uptrend Support Bounce

Posted on April 2, 2009 at 13:34 in Analysis by James Chen

Bullish price action on EUR/USD, a daily chart of which is shown, as of Thursday morning has made a pronounced bounce up off a short-term uptrend support line extending from the early March 1.2455 low. This bounce is now targeting once again a long-term downtrend line extending from the 1.6037 all-time high back in mid-July 2008. In the event of a subsequent break and significant close above this long-term resistance trendline, price could conceivably shoot for a retest of the recent 1.3735 double-tested high. The noted short-term uptrend line should continue to serve as dynamic support for the pair, at least for the near-term.

4 Responses to “EUR/USD - Uptrend Support Bounce”

on 02 Apr 2009 at 3:03 pm1Mark

I’m with you on this one. But i’m a bit hesitant about entering the EURO at this time. Going to stand aside until tomorrows NFP numbers come out, unless we surge past 1.35 area before close. Your post are very helpful Mr. Chen.
on 02 Apr 2009 at 4:14 pm2James Chen

Hi Mark,

Thanks for your comments! It’s my job to provide the technicals every single trading day. But you would be wise to stand aside until NFP provides better direction for the pair. Thanks, Mark!

James Chen
on 03 Apr 2009 at 8:41 pm3tom

James - may i ask , how do you define ’significant close’ above trendline? Is 30 pips significant? 50 pips? - tom
on 05 Apr 2009 at 3:28 am4James Chen

Hi Tom,

Thanks for your question. I don’t put an exact number of pips or specific criteria there because every trader will have a different filter for entering into breakout trades. I have my own idea of what is a significant break or close, but it may not suit your style of trading. So I purposely refrain from giving my own specific trade entry requirements. Thanks for visiting, Tom!

James Chen

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4 Responses to “EUR/USD - Uptrend Support Bounce”