EURUSD—above resistance

With the high this morning of 1.4547, Euro is above the 1.4520 resistance that had capped a congestion range. It is clear that buyers did enter as I wrote about the weekly chart on Monday. Because it held at 1.4157, that strengthens that area which was already a strong support zone.

If Euro can maintain the move, the target of the top of the daily triangle at 1.4969 is possible. However, note the negative divergence on the daily chart. Failure here will find support at 1.4326 (the lower boundary of the rectangle), 1.4157 and the psychological 1.40.

Here's the daily chart:














© Dianne Fecteau, 2011. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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