EUR/USD Technical View

EurUsd formed a red outside bar on the daily charts on Wednesday, breaking below the support levels we’ve mentioned taking us a little by surprise as we didn’t expect such a sharp move. The pair is now trading below the ascending trendline and has confirmed the mid term trend change to the short side; we can expect a retest of the trendline mentioned above, now turned into resistance but the next bearish target is the 1.4500 area where we have a 50.0 Fibonacci line of the last leg up. We have to take into consideration the oversold status on the daily charts that can put additional bullish pressure on EurUsd, pressure that might be enough to halt price action around these levels or even move it higher.

Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

(more…)

EUR/USD Technical View

EurUsd traded above the 1.4800 level for the first three days of the week, but after a failed attempt at breaking lower on Wednesday the second try was successful and we witnessed a drop on Thursday and Friday, a drop that broke through the 1.4700/1.4735 support area and got very close to the 1.4600 round number which is the 61.8 Fibonacci retracement line of the last leg up from 1.4000 to the YTD high at 1.4967. Looking at the recent price action we can expect that the down move to continue although a retest of the trendline the pair broke through on Friday is to be expected, that should offer a new opportunity to enter short. Moving below the 1.4600 round number and a second trendline connecting higher lows on the daily chart will open up the 1.4500 area as a bearish target, an area which coincides with the 50.0 Fibonacci of the above mentioned move up.

Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

(more…)