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The EURO Soared against the Aussie! – May 20, 2010

Above is an update of the EURAUD chart that I presented in my past blog. As you can see, the euro has been gaining some upward momentum against the Australian dollar during the last several days. After reaching a low of 1.39242 last May 16, the pair has bounced all the way near the 1.4800 region, breaking above the descending channel that I marked in its daily chart above. The bias, however, remains bearish given its long term downtrend. In my view, the EUR could move somewhere between 1.4600 and 1.4800 or below the long term downtrend resistance against the Aussie before moving lower again. In case the pair breaches the 1.4800 hurdle and the long term downtrend line, it could easily aim for the 1.5000 marker. More...

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