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On Monday, EURO gained against the USD but failed to decisively move above the immediate resistance near 50-day SMA at 1.2370 level. The pair finally settled at 1.2334, off day’s high of 1.2373.
On Tuesday, EURO rose higher and held on to most of its gains against USD, amid cautious trade ahead of Euro-zone GDP data today. The pair is currently quoting at 1.2355, near 50-day SMA.
From current resistance zone at 50-day SMA, 1.2400 zone on the upside – the 50% Fibonacci Retracement Level of 1.2747 to 1.2042 move and the descending trend-line visible on daily charts, seems to act as major hurdle for the currency pair.
Should the pair manage to decisively move above 1.2400 resistance zone, the up-move is likely to get extended towards 1.2470 resistance zone, the 61.8% retracement level.
On the downside, 1.2300 – 1.2310 – 38.2% retracement level is likely to provide good support for the currency pair.
Should the pair weaken below 1.2300 – 1.2310 support zone, immediate support near 25-day SMA at 1.2270 level and further ascending trend-line support at 1.2230 is likely to protect the currency pair from depreciating further.
A move below 1.2220 would negate the ascending channel formation visible on 4-hourly charts.
Intraday Important Technical Levels
Support 1 – 1.2313 Resistance 1 – 1.2393
Support 2 – 1.2284 Resistance 2 – 1.2428
Support 3 – 1.2238 Resistance 3 – 1.2469
Haresh Menghani
Market Analyst
Admiral Markets
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