EURUSD broke above price channel

Franco Shao from ForexCycle.com at 02/18/10

EURUSD broke above the falling price channel on 4-hour chart and traded in a range between 1.3531 and 1.3838. Lengthier sideways movement in the range would more likely be seen in a couple of days. The price action from 1.3585 is still treated as consolidation of downtrend from 1.4579. As long as 1.3838 resistance holds, one more fall towards 1.3400 area is expected after consolidation, and a breakdown below 1.3531 could signal resumption of downtrend. However, above 1.3838 will indicate that the fall from 1.4579 has completed, then the following bounce could bring price back to 1.3890 or even 1.4050 area.