EURUSD trends higher. Runs into trendline resistance

Written February 1, 2012 at 8:55 AM EST by  

The EURUSD has trended higher today after trending lower for most of yesterday. The move higher today has two legs. The last leg higher has corrected to the 38.2% after testing the topside channel trendline. The high also corresponded with the topside trendline connecting the highs over the last three trading days (see hourly chart below).   Sellers/profit takers were more than happy to sell against this level with risk so clearly defined and limited.  A move below the 38.2% at the 1.3168 area will likely lead to a test of the lower channel trendline at the 1.3156 level currently (see chart above).  The earlier high for the day at 1.3151 will also be a target to breach on the downside if the bears are going to wrestle some more control from the bulls.

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