EURUSD broke resistance is at 1.3395/1.3405 but failed just below the 2012 high of 1.3486. We are approaching major long term resistance now here therefore. The weekly 50% Fibonacci target of 1.3491 sits just above here and again this is a very important long term resistance level plus we have the 200 week moving average just above at 1.3529.


Clearly with the market very over bought on weekly and daily charts the 1.3486-1.3529 band will have to be watched very carefully. We should therefore struggle here after 6 months of strong gains and it may not be wise to run shorts any further in case we hit selling pressure. If attempting shorts here we would use a stop above 1.3580.

[[nid:1042010]]

[[nid:1042012]]

 

Long term levels
1.3529     200 Week Moving Average
1.3491     Weekly 50% Fibonacci
1.3486     2012 High
1.3479     Last week’s high
1.3378     100 Week Moving Average
1.3381/86    April 2012 High
1.3284     May 2012 High
1.3265     Last week’s Low
1.3150     Weekly 50% Fibonacci
1.3140     October 2012 high

 

The article was first published by DayTradeIdeas.com