Euro Technical Major Currencies (2009-12-24)

The euro versus dollar breached resistance level for the descending channel that organized the bearish short term wave trades, where the pair stands at pivotal resistance 1.4360; representing the neckline for the bullish technical pattern, shown in the image above. The structure of this pattern makes us expect a bullish direction over an intraday basis as an initial bullish correction for the last descend targeting 1.4510. Keep in mind that we might witness some volatile fluctuation throughout the breaching process, according to the negative signs appearingon momentum indicators. The expected bullish direction will prevail if 1.4225 remains intact.

The trading range for today is among the key support at 1.4170 and the key resistance at 1.4510.

The general trend is to the upside as far as 1.4035 remains intact with targets at 1.6000.

Weekly ReportMonthly ReportSupport1.42851.42251.41851.41001.4035Resistance1.43601.43851.44251.44601.4510RecommendationBased on the charts and explanations above our opinion is buying the pair with the breach of 1.4360 targeting 1.4510 and stop loss below 1.4285, might be appropriate.