EUR / USD – Trading at Two Week Lows Below 1.29 and Looking for Support

The Euro fell sharply late last week as it moved from the strong resistance level around 1.31 back down towards 1.29.  The 1.30 level could have been expected to provide some support having previously been a strong resistance level only a week or so earlier, however the Euro fell right through it.  The Euro was caught well however, by another level at 1.2950 which provided sufficient demand to temporarily halt the fall.  Prior to this fall over the last couple of days, earlier last week the Euro surged through the significant key level at 1.30, however as expected, the previous resistance levels around 1.30 and 1.3150 loomed large with the former creating a brick wall and forcing the Euro back.   This surge higher however resulted in the Euro trading at a seven week high around 1.3125.

During last week, the Euro placed pressure on the resistance level at 1.31 however it held firm with excessive selling around the level.  This has resulted in the Euro falling the last couple of days back to two week lows.  You could reasonably expect some support to kick in around 1.28 although it is presently receiving some support at 1.29.  Even if it was able to rally again and move beyond the resistance level at 1.31, the previous resistance around the 1.3150 area would likely play a role again and may place some doubt into the minds of buyers, yet again.   (Daily chart / 4 hourly chart below)

daily chart

4 hourly chart

EUR/USD

Dec 9 at 22:05 GMT

1.2890 / 92

H: 1.2926

L: 1.2889

 

S3	S2	S1	R1	R2	R3
1.2900	1.2800	1.2700	1.3000	1.3100	1.3150

EUR/USD Long – Short Ratio

(Shows the ratio of long vs. short positions for the EUR/USD. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)

EUR/USD Technical

• During the early hours of the Asian trading session on Monday, the Euro has dropped sharply through the support level at 1.29.
• The 1.30 level emerged as a key level last month having shown solid resistance for the Euro and this level was expected to offer some support however the Euro fell quite heavily right through it late last week.
• 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: Just below 1.29 around 1.2890.

 

Further levels in both directions:

• Below: 1.2900, 1.2800 and 1.2700.
• Above: 1.3000, 1.3100 and 1.3150.

 

December 10

• AU 0:30 (GMT) Housing & Lending Finance (Oct)
• JP 5:00 (GMT) Consumer Confidence (Nov)
• EU 9:30 (GMT) Sentix Indicator (Dec)
• IT 10:00 (GMT) GDP (Final) (Q3)
• CA 13:15 (GMT) Housing starts (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.