EUR / USD – Continues to Push Higher but 1.31 Looms Large

The last couple of days has seen the Euro surge through the significant key level at 1.30, resulting in the Euro trading at a five week high reaching 1.3075.  The last few weeks has seen the Euro enjoy a resurgence pushing from lows below 1.27 back up towards 1.31.  Over the last couple of weeks, the Euro ran into a wall of supply at the round number of 1.30 which temporarily halted the Euro's advance.  Earlier last week, the Euro eased off considerably from the 1.30 level however it bounced strongly off the support level around 1.29 and moved right back into a congestion area around 1.2950.

In the last few days, the Euro has made a couple of excurions beyond the 1.30 level and in the last couple of days, it has been able to maintain its trading above this level.  The positive sign over the last couple of weeks was that despite the major resistance being felt at 1.30, the buyers persisted and did not lose interest.   The previous resistance levels around 1.30 and 1.3150 now loom large and are likely to play a role should the Euro continue to move higher.    (Daily chart / 4 hourly chart below)

daily chart

4 hourly chart

EUR/USD

Dec 4 at 01:30 GMT

1.3048 / 49

H: 1.3075

L: 1.3020

 

S3	S2	S1	R1	R2	R3
1.3000	1.2900	1.2800	1.3150	—	—

 

EUR/USD Technical

• During the early hours of the Asian trading session on Tuesday, the Euro is finding some support at 1.3050.
• The 1.30 level emerged as a key level last month having shown solid resistance for the Euro and this level has been dealt with in the last 24 hours as the Euro has moved very strongly through it.
• There are now several levels likely to offer support over the longer term should the Euro ease off from its present trading levels. Eg. 1.29, 1.28, and 1.27.
• Current range: Right around 1.3050.

 

Further levels in both directions:

• Below: 1.3000, 1.2900 and 1.2800.
• Above: 1.3150.

 

December 4

• AU 0:30 (GMT) Current Account (Q3)
• AU 0:30 (GMT) Net Exports of GDP (Q3)
• AU 0:30 (GMT) Building approvals (Oct)
• AU 3:30 (GMT) RBA – Overnight Rate (Dec)
• EU 10:00 (GMT) PPI (Oct)
• CA 14:00 (GMT) BoC – Overnight Rate (Dec)

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.