The Euro fell sharply late last week as it moved from the strong resistance level around 1.31 back down towards 1.29. The 1.30 level could have been expected to provide some support having previously been a strong resistance level only a week or so earlier, however the Euro fell right through it. Over the last 48 hours, the Euro has been well caught by another level at 1.29 which has provided sufficient demand to not only temporarily halt the fall, however provide sufficient support to allow the Euro to bounce back to 1.30. Prior to this fall over the last week, earlier last week the Euro surged through the significant key level at 1.30, however as expected, the previous resistance levels around 1.30 and 1.3150 loomed large with the former creating a brick wall and forcing the Euro back. This surge higher however resulted in the Euro trading at a seven week high around 1.3125.
During last week, the Euro placed pressure on the resistance level at 1.31 however it held firm with excessive selling around the level. This has resulted in the Euro falling the last week or so back to two week lows a little below 1.29. Now that it has broken up well from the 1.29 level, it is likely to meet some selling pressure at its present trading level around 1.30. If it was able to rally further and move beyond the resistance levels at 1.30 and 1.31, the previous resistance around the 1.3150 area would likely play a role again and may place some doubt into the minds of buyers, yet again. (Daily chart / 4 hourly chart below)
4 hourly chart
|Dec 11 at 21:55 GMT|
|1.3004 / 05||H: 1.3015||L: 1.2939|
EUR/USD Long – Short Ratio
(Shows the ratio of long vs. short positions for the EUR/USD. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)
- During the early hours of the Asian trading session on Wednesday, the Euro is consolidating just above 1.30 after having previously edged up above.
- The 1.30 level emerged as a key level last month having shown solid resistance for the Euro and this level has emerged again with the Euro dealing with this level presently.
- There are now several levels likely to offer support over the longer term should the Euro ease off from its present trading levels. Eg. 1.29, 1.28, and 1.27.
- Current range: Just above 1.30 around 1.3005.
Further levels in both directions:
- Below: 1.2900, 1.2800 and 1.2700.
- Above: 1.3000, 1.3100 and 1.3150.
- UK 9:30 (GMT) ILO Unemployment Rate (Oct)
- CH 10:00 (GMT) Credit Suisse ZEW Survey (Dec)
- EU 10:00 (GMT) Industrial production (Oct)
- US 17:30 (GMT) FOMC – Fed Funds Rate (Dec)
- US 19:00 (GMT) Budget (Nov)
- US 19:15 (GMT) Fed Chairman Bernanke to give press conference following FOMC Announcement
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