EUR/USD gained ground on Tuesday and moved off an 18-day low it hit on Monday. The pair now has immediate resistance around 1.3285, a Fibonacci retracement level which comes just above 50-day and 100-day SMAs on 4-hour chart. RSI also suggests bullishness for the pair.

Above that, EUR/USD has a stronger short-term resistance (R2) in 1.3447-1.3497 area (near another retracement level) before rising to the 1.3697-1.3785 region (R3).

On the downside, the pair has still risks to break below late  November low of 1.2969 (S1), which will confirm the continuation of the downtrend from early November high of 1.4281. In that case, medium supports of 1.2887 (S2) and 1.2587 will be key levels to watch along with 1.2700, the level we get by mapping AB as CD.  

EUR/USD

EUR/USD gained ground on Tuesday and moved off an 18-day low it hit on Monday. The pair now has immediate resistance around 1.3285, a Fibonacci retracement level which comes just above 50-day and 100-day SMAs on 4-hour chart. RSI also suggests bullishness for the pair. © Copyright 2010 International Business Times. All Rights Reserved.