EUR/USD Breaks Higher as Dollar Sinks

The EUR/USD chart has been rallying.  This is happening as strong data and a strong pre-market Dow are sinking the U.S. Dollar.  This relationship is likely to see a hurdle as the Dow climbs to 9,400 and the EUR/USD chart deals with the current resistance at the 1.4360 to 1.4450 mark.

The Forecast Region on the 30 minute chart is going to be a relatively wide area of selling pressure.  It has broken through higher than the resistance of a Reversal Ascending Triangle Complete Chart Pattern alert (Y).  Prices will have to find enough momentum to get through both the 1.4350 and 1.440 marks.  Both these major psychological levels are within the grey shaded area (Z).  The current trend is up but could be slowing as the initial trend (X) was low.  This was perfect for the triangle chart pattern confirmation but now there is a definite "too far too fast" quality to the breakout.

The follow-through for this momentum is also viable on the 60 minute chart.  The Continuation Channel Up Emerging Chart Pattern alert is a trending pattern with a low Initial Trend (T).  The Forecast Region resistance from the 30 minute chart should be considered a hurdle for this 60 minute set up (S).  Prices have already bounced off the uptrend line support (R) and this further confirmed the strength of the support.  This may be very important if the Dow rally splutters today and the U.S. Dollar Index strengthens.  This would result in a weaker EUR/USD, trigger.  If it pierces the support (R) it could mean a reversal.  For now however, keep an eye on the 1.4350 mark as that is where the short term buys will be taking profits and where the next leg of buyers may come in.

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