Over the last week, the Euro has bounced well off the support level at 1.29 only to run into a wall of supply around the 1.31 level over the last 48 hours. A couple of weeks ago, the Euro moved higher and placed pressure on the resistance level at 1.31 however it held firm with excessive selling around the level, and we are seeing a repeat of this activity and subsequent price action presently. The Euro fell sharply late last week after having pushed into the resistance level at around 1.31 and then been turned away back towards 1.29.
During this time, the Euro was able to push higher and trade at a seven week high around 1.3125. Presently, even if it was able to rally a little further 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 13 at 22:10 GMT |
| 1.3075 / 76 | H: 1.3100 | L: 1.3041 |
| 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 held for the EUR/USD among all OANDA clients. 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 Friday, the Euro is consolidating just below the resistance level at 1.31 that it recently ran into.
- The 1.31 level emerged as a key level a couple of weeks ago when the Euro was strongly pushed away from it, and in the last couple of days the Euro has again ran into a brick wall at this level.
- 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 1.31 around 1.3075.
Further levels in both directions:
- Below: 1.2900, 1.2800 and 1.2700.
- Above: 1.3000, 1.3100 and 1.3150.
December 14
- JP 4:30 (GMT) Industrial Production (Final) (Oct)
- EU 8:58 (GMT) Flash Manufacturing PMI (Dec)
- EU 8:58 (GMT) Flash Services PMI (Dec)
- EU 10:00 (GMT) Employment (Q3)
- CA 13:30 (GMT) Manufacturing sales (Oct)
- US 13:30 (GMT) CPI (Nov)
- US 13:58 (GMT) Flash Manufacturing PMI (Dec)
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
