EURUSD Technical Analysis for May 31, 2013

In the yesterday’s session, EURUSD was very bullish, breaking major resistance levels on the way, which drastically changed the general trend of this pair.

Finally, the EURUSD broke again the resistance at 1.3000 psychological level, after remaining in a range between 1.2950 and 1.2800. Now, the EURUSD is forming a lower high pattern, in order to break the resistance level 1.3057. We must be very careful with the breakout that may occur at this level, because very close, is the 200 day moving average, which could make very strong dynamic resistance on this pair and could cause a bearish rebound, which is not ruled out. If the bearish rebound does occur, it is expected to fall to support at the 1.2937 level.

It is very possible that this bullish trend has been strengthened by the formation of a double bottom pattern above support at 1.2800 psychological level. However, we must be careful when you go to do swing trading this pair, because the fundamental news can affect and invalidate the new bullish hypothesis on this pair.

The MACD indicator is in positive territory, which supports a bullish outlook on this pair for now.

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