Trend stops (2010-10-11 EUR analysis)

A new week again. It is really interesting to read what the nations are doing on currencies, especially US kept on forcing China to appreciate Yuan but China rejected.

Anyway, let's move on to technical analysis. Recently, USD has been weakening and relatively many of the other currencies including Japanese Yen strengthened. Below are Euro in two different time frames.

4-hour:

In this chart, clearly Euro has been following the channel and couldn't stop surging. MACD shows a bullish cross indicating a continuation on the trend. Therefore, we can expect Euro to keep its momentum in short-term.

Daily:

Daily chart shows a different story. MACD is going up far too high for further crazy rise. By using fibs projection, we can find a strong resistant at 1.41. This might the top for this round, aligning with a possible bearish signal shown in MACD. It might be a good short zone at levels around 1.41.