Daily Market Analysis – May 25, 2009

The EUR/USD has seen selling in the early Tokyo session although the uptrend remains very much intact.

The pair remains in a uptrend with support at 1.3900. A break below 1.3990 would indicate a move to this level, but false breakout are common in early trading.

Two rising trend lines also provide support. One currently rests at 1.3900, and the other at 1.3800. The 1.3800 corresponds to an old resistance level on the hourly chart which now will act as support.

A move above 1.4050 would trigger an initial move to test 1.4100, and beyond that the December 30 high just above 1.4200.

USDJPY Testing Short Term Trend Lines

The USD has once again seen selling in the early Monday sessions. After a late surge on Friday which broke through a short term hourly trend line, the selling is expected to resume as the longer term downtrend is still intact.

A rise above 95.00 would indicate a short term reversal and a test of the 96.00 and 96.50 levels.

A move below 94.30 is expected, and if prices hold below this level a test of the recent swing lows at 93.80 is likely. The profit target for a break below 93.80 is 92.70.

Analysis by: – Written by Cory Mitchell
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