The last week has seen the Euro meet significant selling pressure near the resistance level around 1.3160 and move away steadily. In a positive sign, the Euro hasn't collapsed and completely given up on pushing higher however it has recently moved back through the 1.31 level and has been quite close to 1.30 to start this week. The Euro has shown some relatively bearish signs over the last month or so since retracing from its highs near 1.32, and it has been the 1.28 level that has emerged as the major level in the last month.
In the last couple of weeks the Euro has rallied well and been able to push back off the support level at 1.28 and up towards 1.30 and then some, however the resistance level near 1.3160 has stood firm and fended off advances. The 1.28 level still remains a significant level and the Euro is likely to test this level again should it continue to ease off from the resistance level above 1.3150 and fall below 1.30. (Daily chart / 4 hourly chart below)
daily chart
4 hourly chart
EUR/USD |
Oct 22 at 4:15 GMT |
| 1.3040/41 | H: 1.3044 | L: 1.3015 |
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.3000 | 1.2800 | 1.2600 | 1.3150 | — | — |
EUR/USD Technical
- During the early hours of the Asian trading session on Monday, the Euro has just pushed up a little from 1.3020.
- The 1.28 level emerged as a key level too having shown solid support for the Euro at its last reversal and is poised to do so again should the Euro reverse and drift lower again.
- There are now severel levels likely to offer support over the longer term having recently moved through several strong resistance levels. Eg. 1.24, 1.26, 1.28 and 1.30.
- Current range: Just above 1.3000.
Further levels in both directions:
- Below: 1.3000, 1.2800 and 1.2600.
- Above: 1.3150.
October 22
- EU 9:00 (GMT) Eurozone Government Debt/GDP Ratio (2011)
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