Eur/Usd is the Bullish Run Over?

Hello traders the Eur/Usd has had a tremendous trend up and has slowed down in the past week. Some key levels to watch are the resistance area of 1.4159 and support of 1.3700. Right now we are in a range between those levels. A break of either area could indicate further price movement in the direction of the breakout. If you want updates during the week make sure to follow me on Twitter.

On the 4hr chart we have a top at the 1.4159 level but the price does not get back up to that level. Look at the trendline I drew on the 4hr to show this movement.

If we look at a weekly chart you will see a doji which indicates that bullish momentum has currently slowed or stalled. However that is not an indication of a reversal yet. Because the momentum has not started to shift to the downside.

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  • Vk.Raajan

    i agree with this because eur/usd may reach 4159 but it is not sure there is a possibilities to downward. i like this summary by Raajan.vk

  • Walter V D H

    Hi, thanks again for the explanation, great and clear as always.
    I expect a drawback before the bullish momentum enters again in this pair.
    When we look at the weekly chart, we are more or less in a moment of consolidation that is comparable to the same doji formation at more or less the same price level of the left side of the v shape we see at the chart.
    I see a bullish elloit wave pattern, end of the second wave where a drawback to the 1.3600 level is possible before it shoots up testing the 1.4 level again, to break it and heading to the 1.45/1.46 to 1.5 levels

  • JGuy

    Please listen : The week of Nov 8th 2010 will mark the next big collapse of the Dollar. Do not be long the dollar past the 5th of november. we basically have 2 weeks before all hell breaks loose the dollar is going to be crushed as we roll into 2011. I expect we will see banking holidays and markets closed due to huge spikes and massive volutility. Please be very careful in your trading after the elections…………..

  • jake

    That 4 hour chart sure looks like a completed 4th wave is now setting up for the 3 leg of the current 5th wave—-perhaps with just a little more chop in the current 2 wave of the 5th. The weekly chart looks like there may still be some interest in an attempt to probe the 4400 resistance.

  • Hartwellsteven

    Great summary! Cant wait until the market reacts to the G20 meeting that took place over the weekend should be pretty volatile….