By Fast Brokers – The EUR/USD is drifting between 1.19-1.20 after setting a higher low on Monday with investors trying to establish a near-term bottom. However, considerable downward pressure obviously remains and we’re currently witnessing investors biting on oversold conditions. All eyes remain on the EU due to the relatively light data wire across the globe. EU finance ministers will meet today and it is likely they will issue damage control statements which could in effect prop up the EUR/USD until Thursday’s ECB meeting. On the other hand, should the finance ministers not step up with reassuring comments then the EUR/USD could find itself under selling pressure once again. Meanwhile, a little more near-term upswing in the currency pair wouldn’t be too surprising considering the extent of last week’s decline. 1.20 could become a near-term battle ground if the EUR/USD can get a little boost and pop above. Either way, psychological forces are in control for the time being so investors should keep a close eye on the news wires for any new developments.
Technically speaking, the EUR/USD faces multiple layers of topside barriers, beginning with 1.20 and 6/7 highs. As for the downside, the EUR/USD has limited near-term support besides February 2006 lows, though as we said it’s possible the currency pair will try to form a new base around 1.20.
Present Price: 1.1963
Resistances: 1.1977, 1.1991, 1.2017, 1.2034, 1.2052, 1.2064, 1.2083
Supports: 1.1952, 1.1937, 1.1919, 1.1909, 1.1890, 1.1874
Psychological: February 2006 lows, 1.20, 1.19
(click chart to enlarge)
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