Euro/Dollar Technical Analysis
Analysis from www.forex-fx-4x.com
EUR/USD Daily Chart
- The EUR/USD currency pair has moved higher this week following the recent impulse moves to the downside. Price was capped at 1.3936 and any subsequent move beyond this area could meet with strong resistance at the 1.4000 area. The EUR/USD 1.4000 level had proved to be a significant support obstacle for Euro bears since March this year and may well prove to be difficult breaking to the upside. The 200 day SMA (magenta) is aligned with the 1.4000 level and adds additional confluence as does the 50% retrace of 1.45484 > 1.34936.
- Friday printed an inside day on EUR/USD with the first significantly lower close in 5 days. Any further drop below 1.3745 could potentially trigger a move to the key initial downside target of 1.35; this is a psychological round number that has previously proved to be a support and resistance pivot.
- A move above the inside day brings 1.4000 into focus.
- The 50% retrace of the last major move higher, which started in May 2010 through May 2011, is likewise aligned with the key 1.3500 level.
- This weeks range was 442 pips; this is 122% of the AWR over 26 weeks but significantly lower than the previous weeks range of 619 pips
- Price is currently testing resistance turned support on the dollar index August highs. If price hold this support it could be bearish for EUR/USD.
EUR/USD Weekly Chart
