Fan Yang \ 12:15 PM EST \ November 30th, 2009


* Daily and 4H: The market is now testing the 0.9150 area . A break above confirms the breakout above 0.9050, since that previous resistance has held as support. (Refer to Weekly Technical Update 11.27.2009.) Short-term resistance is actually 0.9130, but the confirmation of breaking above 0.9050 is needed is more significant.
* By the end of today’s session, we should note whether the market can close above 0.9150. If it does, we can consider bullish outlook.
* In the daily, we see a swing projection brings us to 0.9600. In a shorter term time frame (4h), we see resistance between 0.9200 and 0.9250. The stochastic in the daily time-frame suggests we are due for a correction.
* At the moment, the pair is basically testing the range resistance as well as retracement resistance (50%, 78.6%, 127%), so until the market closes above 0.9150, we still keep the bearish scenario alive.
* If the market closes below 0.9130, we may consider today’s action as clear-out instead of breakout.

Fan Yang
Currency Analyst,
Commodity Trading Advisor
Via fxtimes.com

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