EUR/USD Sails Smoothly in Rising Channel

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The recent stall of EUR/USD at 1.3588 can also be seen in the context of a rising channel – the third touch of uptrend resistance. The hourly chart below shows the lines:

EUR USD Uptrend Channel Hourly Chart January 31 2013

EUR USD Uptrend Channel Hourly Chart – Click to enlarge

Uptrend resistance began on January 22nd, continued on the 25th and was touched again on the 30th. Uptrend support began on the 23rd and was formed on the 29th. The stall just sent the pair back towards the middle of the channel.

Above 1.3588, resistance appears at 1.3610 and 1.3690. Here is a guide to the next lines on the topside, after the pair broke to 14 month highs.

The shows great strength and seems to ignore worrying data out of Europe: weak German retail sales, weak French consumer spending and serious scandals in Spain and Italy.

The big economic release now comes from the US: Non-Farm Payrolls. See how to trade the NFP with EUR/USD.

The relief in the debt crisis has been sending money back to Europe, after a long period were money was going out.

For more, see the EUR/USD forecast.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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