Since yesterday, the Euro has experienced a sudden fall of 50 pips within an hour, which is quite a feat considering the lack of activity this week in general.Â It did find good support at the 1.25 level which seemed to stop the sudden drop.Â This level has reinforced itself as one of significance after this fall whilst the previous medium term resistance level at 1.24 is still likely to be a support level as it was back in June, if required.Â (Daily chart / 4 hourly chart below)
4 hourly chart
|Aug 31 at 03:00 GMT|
|1.2516/17||H: 1.2563||L: 1.2487|
- During the early hours of the Asian trading session on Friday, the Euro/dollar has slowly but surely recovered some of the lost ground from the strong 50 pip drop overnight.
- Short term, the 1.25 level has demonstrated it is a solid support level and the 1.24 is likely to offer support over the medium term having previously been a strong resistance level for several weeks.
- Current range: Maintaining above 1.2400 and in the short term, sitting above 1.25.Â Over the last week or so, the 1.26 level has also shown some teeth.
Further levels in both directions:
- Below: 1.2400, 1.2300, and 1.2150.
- Above: 1.2600 and 1.2700.
- Should the Euro/dollar be able to maintain its price above the present significant level at 1.2400, then a return back to prices approaching 1.2000 will be less likely.
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