The Euro has continued its theme this week of struggling to push through the 1.26 level.Â This level has already reinforced itself as one of significance and one that continues to loom large.Â Interestingly for most of this week, the Euro has traded within a narrow range of around 40 pips for an extended period between 1.2560 and 1.26.
Over the course over last half day, it has found solid support at 1.2560 as it did earlier this week.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
|Â Â Sep 5 at 00:30 GMT|
|1.2558/59||Â Â H: 1.2626||Â Â L: 1.2555|
- During the early hours of the Asian trading session on Wednesday, the Euro/dollar has continued to do little and has relied on support from the 1.2560 level.
- Over the last couple of weeks, 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) GDP (Q2)
- EU 7:58 (GMT) Composite PMI (Aug)
- EU 7:58 (GMT) Services PMI (Aug)
- EU 9:00 (GMT) Retail Trade (Jul)
- US 12:30 (GMT) Non Farm Productivity (Final) (Q2)
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.