|The pair is trading along the
uptrend, which has a growth target set to a rather distant level
1.6900. Although that level is far away there are no serious
resistances on the way up, so reaching that level is completely real.
In order to continue the uptrend the pair needs to get over resistance
1.6590, while the nearest support is found at level 1.6535. The next
support is located at level 1.6400 – a strong key level. We can speak
about changing of current uptrend to a downtrend only if the pair drops
below level 1.6365, and in such case the dropping target will be set to
Daily graph (09.06.09)
The pair rebounded from support
level 1.6170 formed by the crossing of trend lines “H” (monthly trend
line) and “D” (the lower bound of daily uptrend). This was followed by
a drop below the lower bound of “C-C+” daily sideways trend with
subsequent return to the channel. That fact speaks that there is a very
strong support under the channel and now the pair will try to find a
stronger resistance in order to test level 1.6170 again. But the pair
may not find proper resistance since there are no strong resistances
above level 1.6510, and by going above level 1.6510 the pair will break
the “B-B+” daily downtrend, after which it is supposed to rise to level
1.6900. For the reasons above the pair either will turn from current
levels for testing 1.6170, or it will eventually rise above level
Two variants of events to proceed are seen:
1. In case the pair rises above level 1.6510, it will get to resistance 1.6900 / 1.6950.
2. In case the pair drops below level 1.6070, it will get down to support 1.5480.
Weekly graph (from 05.25.09)
After getting over level 1.5300
(breaking the “Y-Y+” trend’s higher bound) the pair had set its target
of growth to resistance level 1.6900 (“F” trend line). This level is
meant to be reached in the course of “D-D+” uptrend. Upon reaching it,
an intermediate resistance – level 1.6200 (“H” trend line and levels of
Japanese candles) – will appear on the pair’s way. Due to the fact that
1.6200 is an important resistance, a correction is meant to follow from
there and end up at support level 1.5300. Uptrend within the “D-D+”
channel will be resumed from the same level and the pair will reach the
target 1.6900. “D-D+” trend is completed in five waves.
Monthly graph (from 05.25.09)
Bounce off level 1.3900 (“R” trend
line) had provoked a rapid growth of the pair. The peak of growth is
meant to be found at level 1.6900 (“F” trend line). Upon reaching this
level there will be two variants of events to develop:
1. Having bounced off level 1.6900 and after the “D-D+” weekly trend is broken, the pair will get to support 1.4355.
2. If level 1.6900 is unable to
show a sufficient resistance (the pair goes above this level), the pair
will reach resistance 1.8530.