EUR / USD – Runs into a Brick Wall at 1.31

The last few days has seen the Euro surge through the significant key level at 1.30, however as expected, the previous resistance levels around 1.30 and 1.3150 have loomed large with the former creating a brick wall within the last 24 hours.   This surge higher however has resulted in the Euro trading at a seven week high around 1.30.  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.

Within the last 24 hours, the Euro has placed pressure on the resistance level at 1.31 however it has held firm with excessive selling around the level.  If it was to move beyond this present level, the previous resistance around the 1.3150 area would likely play a role again and may place some doubt into the minds of buyers.  (Daily chart / 4 hourly chart below)

daily chart

4 hourly chart

EUR/USD

Dec 5 at 01:30 GMT

1.3098 / 99

H: 1.3117

L: 1.3051

 

S3	S2	S1	R1	R2	R3
1.3000	1.2900	1.2800	1.3100	1.3150	—

 

EUR/USD Technical

• During the early hours of the Asian trading session on Wednesday, the Euro continues to place pressure on the resistance level at 1.31.
• 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 few days as the Euro has moved very strongly through it on its way towards the present level at 1.31.
• There are now several levels likely to offer support over the longer term should the Euro ease off from its present trading levels. Eg. 1.30, 1.29, 1.28, and 1.27.
• Current range: Right around 1.31.

 

Further levels in both directions:

• Below: 1.3000, 1.2900 and 1.2800.
• Above: 1.3100 and 1.3150.

 

December 5

• EU 8:58 (GMT) Composite PMI (Nov)
• EU 8:58 (GMT) Services PMI (Nov)
• EU 10:00 (GMT) Retail Trade (Oct)
• US 13:15 (GMT) ADP Employment Survey (Nov)
• US 13:30 (GMT) Non Farm Productivity (Final) (Q3)
• US 15:00 (GMT) Factory Orders (Oct)
• US 15:00 (GMT) ISM Non-Manufacturing (Nov)

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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.