The Euro finished last week with a flurry as it surged higher and burst through the 1.26 resistance level, however its time above there was short lived. The Euro ran into a wall of supply late last week and it was quickly sold back and pushed below the 1.26 level. This level has reinforced itself as one of significance and one that continues to loom large.Â Interestingly to start this week, the Euro traded within a narrow range of 20 pips for an extended period between 1.2560 and 1.2580.
In the last few hours, it has lept higher again towards the 1.26 level but again has been turned away.Â It continues to trade within a narrow range between 1.25 and 1.26 with the medium term key levels at 1.24 and 1.27. (Daily chart / 4 hourly chart below)
4 hourly chart
|Sep 3 at 23:00 GMT|
|1.2586/87||Â Â H: 1.2611||Â Â L: 1.2562|
- During the early hours of the Asian trading session on Tuesday, the Euro/dollar has continued to do little except trade within a narrow range of between 1.2560 and 1.26.
- Short term, the 1.25 level has demonstrated it is a solid support level, however equally the 1.26 level has reinforced itself as a level of significance as it contines to fend away buyers.
- 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 between 1.25 and 1.26.
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 and in the short term above 1.25, then a return back to prices approaching 1.2000 will be less likely.
- AU 1:30 (GMT) Net Exports of GDP (Q2)
- AU 4:30 (GMT) RBA Overnight Rate (Sep)
- US 12:58 (GMT) Manufacturing PMI (Aug)
- US 14:00 (GMT) Construction Spending (Jul)
- US 21:00 (GMT) Vehicle Sales (Aug)
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