EUR/USD at 18-day low on Korea, Ireland; targets 1.2887 (S1) before 1.2587 (S2)

By | December 20 2010 6:28 AM

With war tensions in Korea strengthening the dollar and rating tensions in Ireland weakening the euro, EUR/USD continued southwards and touched an 18-day low on Monday.

Just above 1.31, the pair is currently supported by the 200-day SMA and 38.2 percent Fibonacci retracement from late last year high of 1.514 to early June this year low of 1.1876. © Copyright 2010 International Business Times. All Rights Reserved.

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As long as the uptrend since June 6 2010 holds, the pair has strong support near 1.2587 (S2) but before reaching that level, the pair may hold around 1.2887 (S1) for a while, pivot points show.

As of 6:16 GMT, EUR/USD was at 1.3159, from its previous close of 1.3187 with immediate resistance seen around 1.3333 (R1), near its 100-day SMA and above that, near 1.3447 (R2).

Just above 1.31, the pair is currently supported by the 200-day SMA and 38.2 percent Fibonacci retracement from late last year high of 1.514 to early June this year low of 1.1876.

On the economic data front, Germany's November producer price index and European Union's October current account data may impact the pair later in the session.

Just

Just above 1.31, the pair is currently supported by the 200-day SMA and 38.2 percent Fibonacci retracement from late last year high of 1.514 to early June this year low of 1.1876. © Copyright 2010 International Business Times. All Rights Reserved.