The EURUSD was indecisive yesterday, made a Doji on daily chart but overall still maintain its bullish short term bias and keep making higher lows since bounced from 1.3000. The bias remains bullish in nearest term but note that as long as stays inside the triangle price is still in a consolidation phase within a major bearish context. The upper line of the triangle which now located around 1.3280 1.3300 will be a key resistance. A clear break and daily close above that area could cancel the bearish outlook testing 1.3350/80 area or higher. Daily EMA 200 is seen around 1.3350. A clear break and daily close above the daily EMA 200 could give further confirmation of a potential major bullish reversal scenario. On the downside, we need a clear break and daily close at least below 1.3150 to give the major bearish scenario another chance retesting 1.3000 strong support area. I still prefer to sell on rallies at this phase with a tight stop loss above the triangle.
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Technical analysis for precious metals with major support and resistance levels and recommendations for 18-08-2009