After breaking strongly through the 1.26 level and surging higher to finish last week, the Euro eased off for a couple of days before resuming its march back towards 1.30 in the last day. Its easing off presented an opportunity for consolidation. Now that it has moved through the 1.28 level, this level is also available to provide some support should the Euro retrace a little. The next major level is clearly 1.30 as this level provided significant support for the Euro way back in February to April. It is highly likely to play a role should the Euro return there in the near future.
We saw the Euro finish last week very strongly as it not only moved away strongly from 1.26 but also smashed through any potential resistance at 1.27 too. (Daily chart / 4 hourly chart below)
daily chart
4 hourly chart
EUR/USD |
Sep 12 at 02:00 GMT |
| 1.2849/50 | H: 1.2871 | L: 1.2758 |
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2800 | 1.2600 | 1.2500 | 1.3000 | — | — |
EUR/USD Technical
- During the early hours of the Asian trading session on Wednesday, the Euro/dollar has just continued to ease off a little from the earlier highs around 1.2870.
- Over the last couple of weeks, the 1.26 level has demonstrated it was a solid resistance level, however this has now clearly been broken as the Euro starts it move towards 1.30.
- The 1.24 is likely to offer support over the medium term having previously been a strong resistance level for several weeks, however the 1.26 and 1.28 levels may also now offer support in the short term.
- Current range: Maintaining above 1.2800.
Further levels in both directions:
- Below: 1.2800, 1.2600, and 1.2500.
- Above: 1.300.
- Should the Euro/dollar be able to maintain its price above the present significant level at 1.2400 and the recent resistance levels at 1.26 and 1.28, then a return back to prices approaching 1.3000 may be possible.
September 12
- FR 6:45 (GMT) Current Account (Jul)
- UK 8:30 (GMT) ILO Unemployment Rate (Jul)
- EU 9:00 (GMT) Industrial production (Jul)
- US 12:30 (GMT) Import Price Index (Aug)
- US 14:00 (GMT) Wholesale Inventories (Jul)
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