By Russell Glaser – During the past two weeks’ trading we have seen a shift in the technicals of the EUR/USD to the downside.
Last Friday’s trading saw a sharp drop in the value of the pair by 0.7%. This made significant inroads into shifting technicals for the pair, causing a breach of the long term trend line on the weekly chart. The pair rose as high as the 20-week exponential moving average before heading lower. The moving average line is now downward sloping, indicating the trend has moved to the downside
This same level could once again serve as resistance as the upward sloping trend line comes in at the same price of 1.2890. Following a breach below a rising trend line, the price has a tendency to move back to the trend line which can act as a resistance level.
Support for the EUR/USD comes in at 1.2645, the 23.6% Fibonacci retracement level from the November high, followed by the support at 1.2470.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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