EUR / USD – Previous Resistance Level near 1.3160 Holds Firm

The last week or so has seen the Euro receive solid support at 1.28 and 1.29 which has assisted it to surge higher towards 1.32.   Back in the middle of September, the Euro met a wall of selling around 1.3170 which forced it lower quickly pushing it back down towards support at 1.28.  The Euro has shown some relatively bearish signs over the last month since retracing from its highs near 1.32.  It has been the 1.28 level that has emerged as the major level in the last month or so.

In the last week and a half, the Euro has rallied well and has been able to push back off the support level at 1.28 and up towards 1.30 and then some.  For the last month since the high near 1.32, the Euro has been forming a descending triangle with the support level clearly at 1.28, however this pattern has been dismantled with the recent price activity over the last week.  Regardless, the 1.28 level still remains a significant level and the Euro is likely to test this level again should it ease off from the resistance level above 1.3150. (Daily chart / 4 hourly chart below)

daily chart

4 hourly chart

EUR/USD

Oct 18 at 03:00 GMT

1.3113/14

H: 1.3139

L: 1.3085

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 Thursday, the Euro has just eased off a little and found support at 1.31.
• 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 1.3100.

 

Further levels in both directions:

• Below: 1.3000, 1.2800 and 1.2600.
• Above: 1.3150.

 

October 18

• CH 6:00 (GMT) Trade Balance (Sep)
• UK 8:30 (GMT) Retail Sales (Sep)
• CA 12:30 (GMT) Wholesale Sales (Aug)
• US 12:30 (GMT) Initial Claims (13/10/2012)
• US 14:00 (GMT) Leading Indicator (Sep)
• US 14:00 (GMT) Philadelphia Fed Survey (Oct)

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