Euro’s failed top break the 1.2880 area...and once we lost 1.2835 all topside bets were off and the Euro was driven lower. We were caught on the downside by the med term 38.2 % Fib level at 1.2741, although overextended by a few pips. Daily charts still point lower, but we do need to make a break below 1.2730 for the market at this point to continue lower.

Once and if we can do that there is no concrete reason why we cannot trade a lot lower. We have an old trendline located at 1.2657 which ties in with our 1.2665/50 support. Here we should see  profit taking and also fresh buyers coming into the market. I am expecting this support to hold initially as the market is quite oversold, although not looking to turn bullish as yet...but this is quite a good support area, so it should not break easily. However if it does break look for 1.2608 which is the med term 50% fib level.

Resistance is at 1.2835/40. Only a clamber back above here sees any light for buyers and then we could see another attempt at 1.2880....This is expected to hold and only above 1.2920 would sellers begin to feel worried and possibly look to get out of short positions.

SUPPORT
1.2755/50
1.2730
1.2710
1.2675
1.2665/50
1.2640/30
1.2610
1.2590
1.2575
1.2555

RESISTANCE
1.2795
1.2808/15
1.2835/40
1.2880
1.2920
1.2950
1.2970/85
1.3024
1.3045*
1.3080/85*

DAILY PIVOTS
R2  1.2934
R1  1.2852
PIVOT  1.2794
S1  1.2712
S2  1.2654

MED TERM FIB
23.6  1.2769
38.2  1.2789
50   1.2806
61.8  1.2823
76.4  1.2843

23.6   1.2906
38.2   1.2741
50     1.2608
61.8  1.2474
76.4  1.2309

 

 

 

The article was first published by CharmerCharts