Euro closed the week at the 1.3260 area a strong support level established on February 27th. Considering the downside momentum of the last couple of days we should have to look at the next support levels, the closest support is at 1.3260 which is the high of February, next we have 1.3185 the 50% of the 1.3070/1.3260 range, further south is the 1.3050/70 area which has been tested multiple times starting on December 15th , January 9th, January 23rd, February 2nd, February 22nd and March 5th. Conversely if price holds above 1.3260 we have a resistance level at 1.3300 January 2nd high and higher up we have December 3rd 2006 high of 1.3363 and finally last weeks high at 1.3411.

Resistance levels

• 1.3668 - December 2004 High
• 1.3483 - March 2005 High
• 1.3410 - March 21^st
• 1.3365 – December 3^rd High
• 1.3300 - January 7^th High

Support levels

• 1.3260 - February 27^th High
• 1.3185 - Feb. 20th High; Mar. 7^th High
• 1.3050/70 -Decemeber 18^th Low; Mar. 5^th Low

Eur-USD thoughts for March 23rd

After Wednesday’s strong move on the Euro we had a down day yesterday March 22^nd which formed an inside bar on the daily charts; not managing to keep above 1.3365 price made a low at 1.3311 very close to the 1.3300 support area established on January 7^th.

Yesterday’s price action brought us very close to where we started the week in the first place; in order for the Euro to continue the uptrend we have to look at how price action develops at 1.3365 December’s 3^rd High and more importantly at 1.3400/1.3410 area, if these two levels are cleared the next resistance consists of March 2005 level at 1.3483 and higher up 1.3668 level made in December 2004. On the flip side if price halts at the current levels (1.3330 as we write this) we should start paying attention to the 1.3311-1.3300 area as a first level of support followed in close by 1.3260 February 27^th high, lower down we have 1.3185 which is February 20^th and March 7^th highs.

Resistance levels

• 1.3668 - December 2004 High
• 1.3483 - March 2005 High
• 1.3410 - March 21^st
• 1.3365 – December 3^rd High

Support levels

• 1.3300 - January 07th High
• 1.3260 - February 27th High
• 1.3185 - Feb. 20th High; Mar. 7 High
• 1.3050/70 -Decemeber 18th Low; Mar. 05 Low

Eur/Usd put in a strong day yesterday the catalyst beeing the US FED statement in the afternoon. Euro broke through the resistance at 1.3365, the December 3^rd 2006 high, and it turned that level into a support level, as this analysis is being done Euro pulled back towards it(1.3365).

If price holds 1.3365 this should set the stage for possible future gains and the next levels to watch out for are: yesterday’s high at 1.3410, higher up we have 1.3483 established in March 2005 and December’s 2004 high at 1.3668. As we can see we don’t have many resistance levels above the current quote as Euro showed strength lately against the greenback.

Conversely if the current level of 1.3365 doesn’t hold and price falls lower we have our first support level at last week’s high of 1.3340, lower down we reenter into a small range between 1.3340/1.3260. Further down we have the 1.3185 area and the stronger 1.3050/1.3080 levels who have been tested on numerous occasions since the beginning of the year.

Resistance levels

• 1.3668 - December 2004 High
• 1.3483 - March 2005 High
• 1.3410 - March 22nd

Support levels

• 1.3300 - January 07th High
• 1.3260 - February 27th High
• 1.3185 - Feb. 20th High; Mar. 7 High
• 1.3050/70 -Decemeber 18th Low; Mar. 05 Low