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EUR/USD – Trading in an Ascending Channel
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On Wednesday, EURUSD revisited the 61.8% Fibonacci Retracement level resistance near 1.3350 region, tested on July 31 and on Thursday, the pair continued
- On Wednesday, EURUSD revisited the 61.8% Fibonacci Retracement level resistance near 1.3350 region, tested on July 31 and on Thursday, the pair continued strengthening and touched its highest level after June 19 and is currently trading well above 1.3300 mark.
- From current level, the pair is likely to face immediate resistance near 1.3390 – 1.3400 zone representing the upper trend-line of the ascending channel formation on 4-hr chart. This could be followed by a strong resistance near 1.3440 – 1.3460 zone marked by 23.6% Fibonacci Retracement Level of 1.2661 – 1.3710 move.
- Should the pair manage to break on the upside from the ascending channel formation and decisively clears 1.3440 – 1.3460 strong resistance, the pair seems to be heading towards 2013 highs, 1.3650 – 1.3700 zone, in the near-future.
- On the downside, 1.3330 – 1.3320 previous strong resistance area, followed by 1.3280 – 1.3270 zone may now act as immediate supports for the currency pair.
- Further, 1.3200 area now seems to have emerged as a very strong near-term support for the currency pair on the downside. Should the pair now break and trades below 1.3200 – 1.3180 strong support, the pair could easily drift lower towards a very important psychological support of 1.3000 round figure. 200-day SMA, near 1.3100 also coinciding with 38.2% retracement level, could provide intermediate support, before the pair re-tests 1.3000 level on the downside.
About the Author
Haresh Menghaniauthor
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