EURUSD has hit major long term resistance at 1.3479/91 from the 2012 high and weekly 50% Fibonacci target plus we have the 200 week moving average just above at 1.3529. We could hover around this area for a few days now while bulls and bears battle it out.
With the market very over bought on weekly and daily charts the 1.3479/91 resistance area could trigger profit taking after 6 months of strong gains and it may not be wise to run longs any further in case we hit selling pressure. Even if we do push higher we run straight in to 1.3529 and so if attempting shorts here we would use a stop above 1.3580.
We have support from the week’s lows at 1.3425/14 but below here we could see 1.3379. It looks unlikely we can fall any further today but below here we have good support at 1.3306/00 for a buying opportunity.
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
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