The EURUSD pair found its short-term bottom at 1.18170 last week and has this morning rallied into previous trend line support at 1.19835. The price has used the 50-period MA to prop up today’s advance and this is now the first point of support at 1.19544. There is also support to be found at 1.19161, 1.19000 and 1.18788. A loss of 1.18621 could result in a retest of the low of last week, giving a chance for a double bottom or leading to a further collapse into the 1.17000 area.
Resistance can be seen at the 1.20000 level and a break targets the 1.20250 level, with the 100-period MA at 1.20335. Further upward progress would target the zone around 1.21000 and the 200-period MA at 1.21308. The 1.21640 area offers minor resistance, with the 1.22000 zone giving a chance at a run higher to the 1.24000 level. At this point, resistance should become much firmer.
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This pair is also feeling the effects of moves in the USD. The pair found support at 0.74115 and rallied back above the support area at 0.74990, before testing the 50 MA and the lightly held falling black trend line. Price on the chart is consolidating at the 100-period MA at 0.75560. The 50-period MA is currently at 0.75200 and supportive, with a loss of this area suggesting a revisit to the lows of last week. The 0.74000 area could provide support below.
The resistance on the chart comes from the 0.76000 level, which was the point at which the drop from the 0.78000 area started to weaken. Price consolidated around this level on the move down and may wish to repeat that pattern on any move higher. The 200-period MA is located at 0.76168 and is softly reinforcing the ceiling of the 0.76000 area. A break higher through this zone targets the 0.77000 area and the falling resistance trend line at 0.77170. The 0.77600 level marks a strong level within another previous zone of consolidation.