EUR/USD Classical Technical Report 05.11
EUR/USD: Setbacks have stalled for now ahead of critical support in the form of the higher low by 1.4155 from 18Apr. At this point, it is difficult to determine whether the market will attempt to retain the underlying bullish momentum and look to establish a fresh higher low above 1.4155, or continue to falter below 1.4155 and force a shift in the broader structure. For now, we would use Tuesday’s range as a short-term directional gauge. A break back above Tuesday’s high at 1.4445 will be needed to encourage bulls, while back below Tuesday’s low at 1.4255 will provide more confidence for bears.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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