Advertisement
Advertisement
EUR/USD Drops From Seven-Month High
By:
Last week, EURUSD currency pair posted its second consecutive week of over 1% gains, triggered by the US Fed Reserve's surprising decision to keep the
- Last week, EURUSD currency pair posted its second consecutive week of over 1% gains, triggered by the US Fed Reserve’s surprising decision to keep the pace of its monthly asset purchase program unchanged at $85 billion. In doing so, the pair managed to provide weekly close above the 1.3500 mark for the first time since the last week of January.
- On Monday, EUR moved slightly lower against USD, dropping further from a seven-month high of 1.3568 touched on
- Thursday last week, after the preliminary reading on German manufacturing for September slipped to 51.3 compared to a final reading of 51.8 in August, indicating expanding manufacturing activity but at a slower pace.
- The 1.3520 – 1.3530 zone on the upside represents 61.8% Fibonacci Expansion Level and now seems to be acting as immediate resistance for the currency pair.
- However, considering that the pair has decisively conquered the 1.3400 strong barrier, the pair, in the near-future, is more likely to continue appreciating towards 1.3650 zone, 2013 closing high also coinciding with the upper trend-line of an ascending channel formation on daily chart.
- On the downside, 1.3500 round figure followed by 1.3460 area now seems to provide immediate support for the currency pair. Further, previous strong resistance near 1.3390 – 1.3400 zone, may now act as a very important support for the currency pair.
- Should the pair struggle to hold the 1.3400 strong support, it seems to immediately drift lower towards 1.3330 – 1.3320 support area, lows touched in the week gone-by. Furthermore, should the pair now slip below last week’s low, the pair could be vulnerable to further downfall towards its next strong support near 1.3200 – 1.3180 zone.
About the Author
Haresh Menghaniauthor
Advertisement