FX.co ★ EUR/USD Weekly Review June 6, 2011

The last month candlestick closed above the broken downtrend and November 2010's High (at 1.4280 levels) .

The Monthly candlestick has a long downside tail indicating rejection of this level and bullish reaction of the backside of the broken trend .

The Weekly candlestick closed as a strong bullish one up to 1.4634 which is the second weekly closure above the broken downtrend .

The horizontal level 1.4250 provides good support for the price indicated by the strong bulish candles after hiting it .

The price is making obvious higher lows and higher highs so we are in a solid up direction .

The Daily candlestick closed as a strong bullish one up to 1.4634 , thus breaking the resistance level 1.4520 which was an obstacle in the way of price to the upside .

What participated in that the strong negative announcements of the USD last friday .

It apears also that the price made a higher low on the daily frame , as it was moving in a bullish channel before .

We must give attention the area around 1.4750 as it's a strong resistance specially if the prices reaches it directly without retracement .

This resistance is at the lower limit of marked broken consolidation range and the backside of the broken bullish channel .