EURUSD resistance at the week’s high of 1.3372 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 with the daily stochastic now signalling we have seen a top for this market. We also have a double top pattern to support this theory and could head lowing in the days to come. However if we do break 1.3415, the next target of 1.3491 could be achieved.

Yesterday we tested support at 1.3260/30 where we suggested exiting all shorts and buying in to longs expecting a good bounce. The market bottomed at 1.3265 and this is worth trying again today if we see this level. We do need a stop loss below 1.3220 however and can try selling in to shorts for a test of the next support at 1.3150/25 which should offer an excellent buying opportunity for today.


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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