By CountingPips.com
The U.S. dollar reversed early losses (following the Chinese currency adjustment) to gain against the other major currencies in forex trading while the U.S. stock markets turned lower today. The American currency gained for the day versus the euro, British pound, Swiss franc, Japanese yen, Canadian dollar, Australian dollar and the New Zealand
The U.S. stock markets, meanwhile, reversed lower after starting the day sharply higher with the Dow Jones ending the day down by 8 points, the Nasdaq decreasing about 20 points and the S&P 500 lower by over 4 points. Oil was flat today at the $77.82 per barrel level while gold was also flat at the $1,239.70 per ounce level.
The EUR/USD currency pair opened the day near the 1.2414 mark and touched an intraday high at 1.2466 in early morning trading before turning lower to decline below the 1.2350 level in U.S. afternoon trading. The EUR/USD had held above 1.2350 since last Thursday but has dipped below the 1.2330 level (2008 low point) as of time of writing today. Further declines could signal that we have touched a short-term top in this pair (and risk appetite) from the rebound off of the June 7th lows.
Below 1.2330, the 1.2250 level (recent support), the 1.2150 level (recent support) and the 21-day simple moving average (1.2218) are areas of potential support while a break below the 1.2150 level will provide downside pressure for a retest of the 1.1876 level. Further upside advancement could see the 1.2600 area looming as potential resistance. The 1.2600 area has acted as previous support/resistance area and the 38.2 fibo retracement from 1.3817 to 1.1876 is right around the 1.2620 level.
Key Levels:
1.2620 – fibo retracement level
1.2580/1.2600 – previous support/resistance
1.2452 – May 28th resistance
1.2417 – intraday high 6-18
1.2330 – 2008 low support/resistance
1.2300 – support/resistance
1.2250/70 – previous support/resistance
1.2218 – 21-day moving average
1.2150 – level (recent support)
1.1876 – June 7th (4-year low)