The last couple of weeks has seen the Euro meet significant selling pressure near the resistance level around 1.3160 and move away steadily. Within the last week, it has been receiving solid support at 1.30 although in the last day or so, it has dropped below there but tried to hang on. The recent resistance level around 1.3150 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.
In the last few 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 1.30 level and been unable to hang on. (Daily chart / 4 hourly chart below)
daily chart
4 hourly chart
EUR/USD |
Oct 24 at 00:05 GMT |
| 1.2964/65 | H: 1.2996 | L: 1.2920 |
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2800 | 1.2600 | — | 1.3150 | — | — |
EUR/USD Technical
- During the early hours of the Asian trading session on Thursday, the Euro is trading within a narrow trading range between 1.2960 and 1.2970.
- The recent resistance level around 1.3150 has played a role again over the last week, 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 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, and 1.28.
- Current range: Just below 1.30.
Further levels in both directions:
- Below: 1.2800 and 1.2600.
- Above: 1.3150.
October 25
- EU 8:00 (GMT) M3 Money Supply (sa) (Sep)
- UK 8:30 (GMT) GDP (1st Est.) (Q3)
- UK 8:30 (GMT) Index of Services (Aug)
- US 12:30 (GMT) Durable goods orders (Sep)
- US 12:30 (GMT) Initial Claims (19/10/2012)
- US 14:00 (GMT) BoC Monetary Policy Report released follwed by press conference
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