EUR / USD – A Temporary Sojourn Above 1.30
The last 24 hours has seen the Euro enjoy a sojourn above the key level at 1.30 before being forced back again with excessive supply. Over the last few days, the 1.29 level has been providing strong support and stopping the Euro's price decline, and the last 48 hours has seen the Euro jump up from this level towards 1.30. Looking at the bigger picture, the last few weeks has seen the Euro meet significant selling pressure near the resistance level around 1.3160 and move away steadily.
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. Since the Euro broke through 1.30 last week, the 1.29 has become a factor and showed solid 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 31 at 22:20 GMT|
|1.2956/57||H: 1.3020||L: 1.2946|
- During the early hours of the Asian trading session on Thursday, the Euro has just eased off a little from its sojourn over 1.30 and is consolidating around 1.2960.
- 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 1.2960.
Further levels in both directions:
- Below: 1.2900, 1.2800 and 1.2600.
- Above: 1.3000 and 1.3150.
- CN 1:00 (GMT) Manufacturing PMI
- JP 5:00 (GMT) Vehicle Sales (YoY)
- AU 5:30 (GMT) RBA Commodity Price Index
- US 12:30 (GMT) Non-Farm Productivity
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