By CountingPips.com
The euro has continued its recent strength against the US dollar in the foreign exchange markets and reached its highest level since February in Wednesday’s trading. The European common currency has notched gains over the past three weeks against the American currency and is already on its way this week to close higher for a fourth consecutive week.
The EUR/USD currency pair reached a high level of 1.3358 in Wednesday’s trading and marked the highest trading exchange rate since February 20th. The pair found buying support under the 1.3300 level early on Wednesday and never really looked back to trade at approximately 1.3335 at the New York close of trading.
EUR/USD Daily Chart – This currency pair has now ascended above the 1.3300 level and, perhaps, with more upside buying momentum, can look to set its sights on the major levels of 1.3400 and 1.3500. First up, bullish momentum would likely see overhead resistance at the 1.3350 level before the 1.3400 comes into play. The 1.3500 price is a major psychological level and would likely bring heavy resistance and volatility if the trend extends that far.
Potential support levels on the downside to look out for are the 1.3250 — 1.3280 key support area and then the 1.3200 area which has acted as both support and resistance in the past. Falling under the 1.3200 level would be a bearish sign that this latest uptrend has run out of steam and possibly set up a retest of 1.3000.
Economic Events Coming Up:
Thursday, June 13
Australia — May employment data
Switzerland — producer price data
United States — retail sales data
Japan — Bank of Japan minutes
United States — weekly jobless claims
Friday, June 14
Euro zone — consumer price index
euro zone — employment data
United States — University of Michigan confidence survey
United States — current account
United States — producer price index
Written by Zac Storella, CountingPips Forex Blog
