Daily Outlook: Bulls finally woke up yesterday, aided greatly by news that Moody’s has decided to review the US’ AAA credit rating in light of the possibility that the US may default (most likely very shortly) on its debt obligations. S/R lines have been leading the way and the sustained break yesterday above 4040 put some nice pips in our pocket as the week enters its final days.
The most recent falling trend resistance line (last yellow line) is our key S/R at the moment and we are bearish below it and bullish on a break above. Overall we are bullish on this pair at the moment as long as we stay above 4040 and will prefer to look for longs over shorts.
