EURUSD broke above falling trend line

Franco Shao from ForexCycle.com at 12/28/09

 

EURUSD broke above the falling trend line on 4-hour chart, suggesting that a short term cycle bottom has been formed at 1.4218 level. Range trading between 1.4218 and 1.4500 is expected in a couple of days. Critical resistance is located at 1.4500, as long as this level holds, the rise from 1.4218 could be treated as minor consolidation of downtrend from 1.5144, and another fall towards 1.4000-1.4100 is still possible after consolidation. However, a break above 1.4500 will indicate lengthier consolidation of downtrend is underway and further rally could be seen to 1.4700-1.4750 area.