By CountingPips.com
The U.S. dollar has traded higher Tuesday against the euro to edge up for a second straight day to start the week. U.S. stocks and oil have headed lower today while the dollar has been mixed overall against the other major currencies. Economic news released today by showed that U.S. existing homes fell more than expected in May by 2.2 percent.
The euro has trended lower along with the risk currencies (AUD,NZD,CAD) today and price action potentially signals that we may have touched a short-term top this week from the rebound off of the June 7th lows. The EUR/USD currency pair opened the day near the 1.2323 mark, reaching an intraday high at 1.2353 in early morning trading before turning lower and falling below the 1.2300 level. The pair has now touched the lowest trading level since early Thursday of last week and currently consolidates near 1.2275 in the afternoon of the U.S. trading session.
On the downside for the EUR/USD, the 1.2250 level (today’s support), the 1.2150 level (recent support) and the 21-day moving average (1.2207) are areas of potential support with a break below the 1.2150 level likely to provide downside pressure for a retest of the 1.1876 level. Further upside advancement would need to overcome 1.2350 resistence and could see the 1.2450/70 area and the 1.2600 area looming as potential resistance. On this recent rise higher, the 1.2466 level twice acted as resistence while 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.
EUR/USD Daily Chart
Key Levels:
1.2620 – fibo retracement level
1.2580/1.2600 – previous support/resistance
1.2450/70 – June 18 & 21 resistance
1.2417 – intraday high 6-18
1.2330/50 – 2008 low – support/resistance
1.2300 – support/resistance
1.2250/70 – previous support/resistance June 22nd
1.2207 – 21-day moving average
1.2150 – previous support/resistance
1.1876 – June 7th (4-year low)