By Russell Glaser
Yesterday’s closing price for the EUR/USD had significant technical ramifications.
The EUR/USD closed below the rising support line from the November and December lows and finished the day well below the 200-day moving average. The selling of the pair was capped at 1.2970, the November 30th low which is the first support level. A breach below this level would open the door for further declines, with support coming in at the September 6th high at 1.2920, followed by the 61.8% Fib retracement form the June to November move at 1.2800.
The rising support line should now turn into a resistance level. This comes in today at 1.3110. Further resistance is found at the top of the December to January consolidation pattern at 1.3440.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
