The euro once more held the 1.3722 support and this propelled the market higher to 1.3809. Good close. And as you can see from the below chart, medium term we are beginning to turn positive on the daily charts. Of course, all this obviously depends on the ability to hold over the 1.3722/00 support. If we fail to do so then we can expect the market to weaken further before buyers come back into the market. If below 1.3700 we would be looking at 1.3642 to 1.3620 as a nearby attraction.
Now intra day support is at 1.3770 with the daily pivot at 1.3767. Therefore, if we can hold on to this area initially what with the short term charts showing bullish tendencies, we can trade higher breaking through 1.3809 on the way to 1.3835/45. Initially, cover all longs to here. Reinstate longs then on a break above 1.3845. If we can break through this barrier we can see the market trade higher and we would be looking at this coming higher for 1.3875/95. By then the short term charts should be showing overbought, so cover all longs to here and look to reinstate longs only if we are above 1.3916.
