FX.co ★ EUR/USD strong resistance 1.3534 - for January 29, 2012 (Daily Strategy)

This morning the euro during the American session overcame maximum level of 1.3477. Last week it reached a new high at 1.3495, a few pips above it there is the first weekly resistance at 1.3534. It is likely that this upward movement stops at this level, since in the daily charts this pair is overbought, we expect a more prolonged correction movement at least to the level of 1.3323. But we must be cautious because the dominant trend is upward. On the other hand, we can re-buy this pair at the 1.34 support level. If the pair is pushing down this level it will most likely continue falling until the first support weekly, 1.33. A weekly close above the price of 1.35, the scenario will change over the long term, since it is likely that this pair tries to go up to the psychological level of 1.40 to 1.50.

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