(1,3270) The EUR/DOLL confirmed a strong monthly closing and a positive yearly one reversing last year’s negative year reversal. The weekly closing last Friday was also positive remaining however interior the range of the previous week forming a new inside week with 1,3320 – 1,3130 the levels. The indicators of the m/t charts are positive and at the moment also those of the monthly one are starting to move above the line suggesting further upside potential. bearish divergences in the daily chart support a positive tone. The indicators of the s/t charts are also positive supporting higher levels. An hourly and, later, daily closings above 1,3310 will support higher levels suggesting a possible target at 1,3542. The upside potential of the EUR/DOLL is however greater having confirmed some time ago a reversed S_H_S formation with a potential target at 1,4278!! Only a return below 1,2660 will abort this scenery. The m/t scenery has however not really changed because the weekly chart is still suggesting lower levels for the EUR/DOLL in the m/; however, before moving lower we could see higher levels toward 1,35 while the m/t resistance line is found at 1,4315. In the s/t, a possible correction should find support at the 200 hours line at 1,3209; still only a return below 1,3160 will postpone further strength!! We are still short but put a stop and reverse at 1,3320.
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