In previous Forex Signal we looked at the minor Trendline which was acting as support level. This line did held the price and we saw a small rally towards the top of the range.
There was also a fundamental reason behind the rally, Italian Prime Minister offered to quit, which increased optimism in hope for a new leader who can tackle the debt crisis better.
Let’s quickly look at EURUSD daily chart:
1.3850-70 continues to be an important resistance level. Look out for Breakout above this level for good run up. However, if the price breaks below the Trendline then 1.3600 stills stands as a major support area which will limit the down move.
There is no major economic news release during London session today to drive the market. Later we have Fed Chairman Bernanke who will speak during US session.
Forex Trading Signal : Look for Breakout of minor Trendline around 1.3720-00 area targeting 1.3600. On the long side, watch for Breakout of 1.3870, wait for pullback re-test and then look for longs targeting 1.3950
These Forex trading signals are to be used along with your own trading system. Let us know how you them by leaving a comment below.