For the third time in a week, the Euro has broken through the key 1.26 level however this time it has remained there for a full day. This level has previously reinforced itself as one of significance and one that was causing a major obstacle to the Euro. For the most part of the last couple of weeks, the Euro has traded within a narrow range between 1.25 and 1.26, however we might now see it consolidate above 1.26 and then decide upon its next course.
Over the last week, the Euro had found solid support at 1.2500 only to quickly return back to continue its assault on the 1.26 level. The demand has now clearly overwhelmed supply and forced it through. The more medium term key levels at 1.24 and 1.27 continue to be a factor. (Daily chart / 4 hourly chart below)
daily chart
4 hourly chart
EUR/USD |
Sep 7 at 02:30 GMT |
| 1.2629/30 | H: 1.2651 | L: 1.2561 |
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2600 | 1.2500 | 1.2400 | 1.2650 | 1.2700 | — |
EUR/USD Technical
- During the early hours of the Asian trading session on Friday, the Euro/dollar has just eased off a little from the highs around 1.2650.
- Over the last couple of weeks, the 1.25 level has demonstrated it is a solid support level, however the equally strong 1.26 level has been fending off buyers.
- The 1.24 is likely to offer support over the medium term having previously been a strong resistance level for several weeks.
- Current range: Maintaining above 1.2400 and in the short term, consolidating above 1.26.
Further levels in both directions:
- Below: 1.2400, 1.2300, and 1.2150.
- Above: 1.2650 and 1.2700.
- Should the Euro/dollar be able to maintain its price above the present significant level at 1.2400 and in the short term above 1.25, then a return back to prices approaching 1.2000 will be less likely.
September 7
- AU 1:30 (GMT) Trade Balance (Jul)
- CA 12:30 (GMT) Net Change in Employment (Aug)
- CA 12:30 (GMT) Unemployment (Aug)
- US 12:30 (GMT) Non-farm Payrolls (Aug)
- US 12:30 (GMT) Private Payrolls (Aug)
- US 12:30 (GMT) Unemployment (Aug)
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