Monday, May 9, 2011

EUR/USD ~ Update ~ 9 May 2011

(Read my last EUR/USD update here)

After the break of the 1.43 area earlier this year I expected the EUR/USD to rally to 1.50-51.

Last week the EUR/USD almost hit this target and has sold off since then back to the break out area of 1.43ish which I think is now strong support (1.41-43ish):

Despite the big correction of almost seven cents I don't think that this is a new medium/long term downtrend. As aforementioned 1.41-43 should be strong support and unless we get a convincing break of this area I still think we could see one more rally to 1.50-51.

Should we get a break of the support though then we may go down to 1.35ish or even 1.30 but I'll post a new update if it happens.