EURUSD did retest 1.3395/1.3405 resistance on Friday and we warned of a strong chance that the market could not break higher. A top was seen here as expected and 1.3325/15 support is being tested but if we move below 1.3300 we could continue lower towards 1.3260/30. Exit all shorts and buy in to longs here expecting a good bounce. We do need a stop loss below 1.3200 however for a test of the next support at 1.3150/25 which should offer an excellent buying opportunity.

The 100 week moving average at 1.3382 could pose a problem if we bounce off 1.3315 support and we have resistance again at 1.3395/1.3405 which should remain a very tough obstacle. A good chance therefore of a high for the day again if tested but if we do break above here the next target of 1.3491 should be achieved.





Long term levels

1.3491     Weekly 50% Fibonacci

1.3404     Last week’s high

1.3382     100 Week Moving Average

1.3381/86  April 2012 High

1.3284     May 2012 High

1.3257     Last week’s Low

1.3150     Weekly 50% Fibonacci

1.3140     October 2012 high

1.3028    November High



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