EUR / USD – Continues to Consolidate over the Longer Term
The last couple of weeks has seen the Euro meet significant selling pressure near the resistance level around 1.3160 and move away steadily. This level around 1.3160 has definitely played a role and placed excess supply pressure on the Euro, and the short term support level at 1.30 hasn't been as steadfast in maintaining price. Over the last week, the Euro has been resilient in trying to hold on to the 1.30 level however the pressure has pushed it lower resulting in it trading just below 1.29 for a short period late last week.
A few weeks ago the Euro rallied well and was 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 stood firm and ably fended off advances. Since the Euro broke through 1.30 last week, the 1.29 has become a factor and is showing some support, after having done so a few weeks ago. The 1.28 level still looms large and remains a significant level and the Euro is likely to test this level again should it continue to ease away from 1.30. (Daily chart / 4 hourly chart below)
4 hourly chart
|Oct 28 at 22:10 GMT|
|1.2933/34||H: 1.2970||L: 1.2934|
- During the early hours of the Asian trading session on Monday, the Euro is just easing away from 1.2950 after pushing up from below 1.29 to finish last week.
- The recent resistance level around 1.3150 has played a role again over the last couple of weeks, and more recently, the Euro has struggled to hold on to 1.30.
- 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 continue to drift lower.
- 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, and 1.28.
- Current range: Just below 1.2950.
Further levels in both directions:
- Below: 1.2900, 1.2800 and 1.2600.
- Above: 1.3000 and 1.3150.
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