In a surprise move, the EURUSD moves back above the trendline resistance
Written September 10, 2009 at 10:45 AM EST by Greg Michalowski
Admittedly, I am surprised.
The breaking of the trendline support at tthe 1.4537 level should have led to lower levels for the EURUSD. The price did move sharply lower, but has since rebounded and moved back above this trendline. This puts into question the downside bias from the trendline break. In fact it turns the bias to the upside again.
When the market does not do what it should do, it is time to step back and reevaluate the price action. I would expect the trendline to now provide support, but given the market volatility and up and down action, risk is increased. So trading volumes should be reduced until more orderly markets prevail. Cautiously bullish.
Categories: Forex Trading |
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