Wednesday, April 8, 2009

EUR-USD Breakdown from channel

eur usd 240 mins 8.4.09

EUR-USD 240 mins chart

The pair had been moving inside the confines of the parallel channel for the past several weeks, ever since the huge 400 pip candle in mid march on Bernanke’s decisions to buy more treasury & mortgage bonds. We saw a break below in end March, but again a pull back into the range happened. Now again, we have seen a break below with a retest of both the support line as well as the other rising support line. It seems that this move down is all set to continue over the coming few sessions.

There is minor support at 1.3110, where we had the previous swing low in late March.