Wednesday, May 18, 2011

EUR/USD 1,4245

The Euro bounced up from 1.4120 low yesterday to regain lost ground in US session and breach 1.4250 resistance during Asian trade, to stall below 1.4285 during European session, with previous resistance area, at 1.4240/50 offering support so far.

Immediate resistance lies at the mentioned 1.4285 (day high), above here, 1.4340 (May 13 high) and 1.4425 (May 11 high). On the downside, support levels are 1.4230/40 (day lows), and below here, 1.4125 (day low) and 1.4080/85 (intra-day support).

On the longer-term, Ron William, technical strategist at MIG Bank, warns about a bearish engulfing pattern on the monthly chart, which threatens the bullish move of the previous 5 months: "1.4125 (day low), and below here, 1.4080/85 (intra-day support)."