EUR / USD – Presently Testing the Short Term Support Level at 1.29
The last couple of weeks has seen the Euro meet significant selling pressure near the resistance level around 1.3160 and move away steadily. Over the last few days, the 1.29 level has been providing strong support and stopping the Euro's price decline, but for how long? Should the Euro fall through the 1.29 level, there is a reasonable chance that the longer term support level at 1.28 will be called upon. Earlier last week, the Euro was resilient in trying to hold on to the 1.30 level however the pressure 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 previously 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 break through the present support level at 1.29. (Daily chart / 4 hourly chart below)
4 hourly chart
|Oct 29 at 21:50 GMT|
|1.2902/03||H: 1.2934||L: 1.2885|
- During the early hours of the Asian trading session on Tuesday, the Euro is consolidating on the support level at 1.29.
- 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 and break through the present support level at 1.29.
- 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: Right around 1.29.
Further levels in both directions:
- Below: 1.2900, 1.2800 and 1.2600.
- Above: 1.3000 and 1.3150.
- JP 6:00 (GMT) BoJ publishes outlook report
- EU 9:00 (GMT) Business Climate Index (Oct)
- EU 9:00 (GMT) Consumer Sentiment (Oct)
- EU 9:00 (GMT) Economic Sentiment (Oct)
- EU 9:00 (GMT) Industrial Sentiment (Oct)
- US 13:00 (GMT) S&P Case-Shiller Home Price (Aug)
- US 14:00 (GMT) Consumer Confidence (Oct)
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