EURUSD holds the support trendline on first test.

Written January 24, 2012 at 10:08 AM EST by  

The EURUSD held trendline support on the 1st test on the hourly chart above.  The price has rebounded to resistance on the 5 minute chart agains the underside of an trendline which was resistance, then support and now may be resistance (see chart below).  The other technical note on the chart below is how the 100 and 200 bar MA (blue and green lines) have turned down after converging and flattening.  This should keep the bias to the downside for the pair today. I would look for sellers up to 1.2990 area (38.2% of the weeks range).  Key time for the EURUSD.  We will see if the market agrees with what the technicals are saying at the moment.

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