Clearly the 1.26 level has now been broken after constant pressure for over two weeks from demand. This level has previously reinforced itself as one of significance and one that was causing a major obstacle to the Euro and now that it has broken, it is likely to become a support level should the Euro retrace from its present four month highs. For the most part of the last couple of weeks, the Euro has traded within a narrow range between 1.25 and 1.26, and this may also provide some congestion should the Euro return lower.
We saw the Euro finish the 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 10 at 01:30 GMT |
| 1.2790/91 | H: 1.2816 | L: 1.2787 |
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2700 | 1.2600 | 1.2500 | 1.2800 | 1.3000 | — |
EUR/USD Technical
- During the early hours of the Asian trading session on Monday, the Euro/dollar has just eased off a little from the highs around 1.2820.
- 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.
- 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 level may also now offer support in the short term.
- Current range: Maintaining above 1.2600 and in the short term, consolidating below 1.28.
Further levels in both directions:
- Below: 1.2700, 1.2600, and 1.2500.
- Above: 1.2800 and 1.3000.
- Should the Euro/dollar be able to maintain its price above the present significant level at 1.2400 and the recentr resistance level at 1.26, then a return back to prices approaching 1.3000 may be possible.
September 10
- JP 23:50 Sunday (GMT) Current Account (Jul)
- JP 23:50 Sunday (GMT) GDP (Final) (Q2)
- AU 1:30 (GMT) Housing Finance (Jul)
- AU 1:30 (GMT) Lending Finance (Jul)
- JP 5:00 (GMT) Consumer Confidence (Aug)
- US 19:00 (GMT) Consumer Credit (Jul)
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