EUR/USD Technical View
After 6 weeks of gains the Euro had it’s first week of loses against the US dollar. The week started with a down day but the pair recovered on Tuesday and printed a new high at 1.3850, after making a new high we saw a small retracement in the afternoon which turned into a full reversal on Wednesday and although some thought that the pair had found some strong support with Thursday’s move that was not the case as we saw another big red candle on Friday. Euro is now trading very close to a crowded area, full of support and resistance lines; a continuation of the south move will get the pair very close to the next support area around 1.3600/15, if this area gets breached we have to look at 1.3550/60 for more support and even lower down at 1.3460. Conversely we still have to look out for a possible uptrend move, so if the pair fails to make new lower lows early in the week we might as well start looking for resistance lines that could have an impact over a north bound move. First resistance line is just above current trading prices established on April 27th at 1.3680, higher up we have the 1.3750 level that could act as intermediary resistance before a push towards July 24th highs at 1.3850. As always we will keep an open eye on the markets moves and will act accordingly.
Resistance Levels
- 1.3830 – July 18th High
- 1.3750 – round number
- 1.3680 – April 27th High
Support Levels
- 1.3550 – June 5th High
- 1.3459 – May 10th/11th Low
- 1.3365 – December 3rd High
(more…)
