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EUR/USD Might Continue to Drift Lower
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As was mentioned in previous report, considering that EURUSD had failed to hold and decisively weakened below 1.3300 - 1.3280 support marked by the lower
- As was mentioned in previous report, considering that EURUSD had failed to hold and decisively weakened below 1.3300 – 1.3280 support marked by the lower trend-line of an ascending channel formation on daily chart, the pair seemed vulnerable to further downfall.
- On Friday last week and on Monday, drifted lower towards a very strong support that has emerged near 1.3180 – 1.3200 zone. On Tuesday, the pair is holding steady near 38.2% Fibonacci Retracement Level of July – August 2013 up-move and is currently quoting at 1.3188 ahead of the US ISM Manufacturing PMI data, scheduled for release later on Tuesday. Also read: Important Events Lined-up In The Upcoming Week
- Should the pair now weaken below 1.3200 – 1.3180 strong support zone, the pair seems to immediately test the 200-day SMA support, currently near 1.3150 – 1.3140 zone.
- Further, a decisive break below 1.3200 – 1.3180 and failure to hold 200-day SMA support could possibly trigger further near-term downfall for the currency pair towards a very important psychological support at 1.3000 level. 50% Fibonacci Retracement Level, 1.3080 – 1.3100 zone, could provide some intermediate support for the currency pair.
- On the upside, Monday’s high near 1.3230 level now seems to act as immediate resistance for the currency pair. This is closely followed by resistance at 1.3300 – 1.3280 zone, previous strong support that could now act as important resistance also representing 38.2% retracement level.
- Near-term outlook for the currency pair remain bearish and the pair could be vulnerable to further weakness initially towards 200-day SMA support and then towards important psychological level of 1.3000.
- However, a decisively pull-back above 1.3300 important resistance might negate the short-term bearish outlook for the currency pair.
- Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/
About the Author
Haresh Menghaniauthor
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