Biz Direct MarketKnowing When To Make A Good Decision

At the time of writing, the Euro dollar has strengthened against the US dollar, and may have potential to strengthen more in the near term. However, just today the market rose to a level of relatively strong resistance.

No important previous highs have been exceeded so far in the Euros rise, which makes somewhat vulnerable to areas of resistance. The resistance is appearing at 1.2780, very near to the R3 level mentioned in last weeks column.

A combination of forces at 1.287- is what the market is reacting to. Firstly, there is a one month old declining trend line precisely at that level as well as at least five Fibonacci ratios virtually piled on top of each other.

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The NYMEX (New York Mercantile Exchange) Crude Oil chart shows a consolidation pattern following the substantial fall in prices in 2008. The consolidation pattern is a sideways trading band that is defined by long term support and resistance levels. This type of consolidation pattern is also developing in many commodities. The consolidation pattern does not automatically lead to the development of a new uptrend.

The lower level of the trading band is near $32.00. This level has been tested several times in recent weeks. This level is also a strong historical level.

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