Forex Technical Update June 17, 2010 EUR/USD is in Resistance Zone
- Daily: The EUR/USD has been in recovery mode since last week. It is now trading at 1.24. There should be resistance starting here. The market has strong momentum so it may continue towards 1.25.
- Look for topping action soon as a strong bearish attempt from this zone 1.24/1.25 should indicate bearish continuation towards the 1.17 area.
- A break above 1.26 however suggests either a reversal or an extended consolidation period. I would adjust the counts and regard this rally as a subwave a. This means the next wave down would then be expected to be b, and not to be strong, but may test the 1.20/1.19 area. Instead, a bullish outlook towards 1.30/1.31 should be considered if the market breaks above 1.26.
Fan Yang Currency Analyst Commodity Trading Advisor
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