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