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July 29, 2010 – EUR/USD – Bullish Momentum

clip_image002(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

7/29/2010 – EUR/USD – Price action on EUR/USD (a 4-hour chart of which is shown) as of Thursday (7/29/2010) morning, has reached its upside resistance target of 1.3100, as noted in Monday’s EUR/USD analysis.  This occurs within the context of an accelerated parallel uptrend channel that originally stems from the 1.1875 low in early June, and after breaking out cleanly above the prior 1.3026 high.

After hitting and slightly exceeding the 1.3100 resistance target, price action has stalled, but still continues to carry a bullish momentum bias. In the event of a strong breakout and close above 1.3100 resistance, this potential bullish momentum could potentially begin targeting further upside resistance levels, including 1.3200 and then 1.3400, the latter of which also coincides with an approximate 138.2% Fibonacci extension of the bullish run from the bottom of the current trend parallel channel to the prior 1.3026 high.

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