EUR/USD Technical View

Euro followed the other majors and lost ground against the the US dollar on Monday, the pair broke below the support trendline and the 1.4600 level only to find support a few points above 1.4500. After yesterday’s big move down, more than 140 points, we are seeing the pair bounce back up, it has already recovered most of the lost ground and is trading again above 1.4600. The volatility has clearly increased in the last few days and that has affected almost every pair, having changed the way price action develops usually, EurUsd mid term trend is still bullish although we have seen a repositioning in the market mostly based on fundamental reasons. The main target for longs is now the YTD high at 1.4735 which has so far proven to be a good resistance level as well. On the other hand a failure to resume the up trend will push the pair lower perhaps below the 1.4500 support area.

Resistance Levels

• 1.5000– round number
• 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

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