Technical forecast for EUR/USD

EURUSD broke resistance is at 1.3395/1.3405 but failed just below the 2012 high of 1.3486. We are approaching major long term resistance now here therefore. The weekly 50% Fibonacci target of 1.3491 sits just above here and again this is a very important long term resistance level plus we have the 200 week moving average just above at 1.3529.

Clearly with the market very over bought on weekly and daily charts the 1.3486-1.3529 band will have to be watched very carefully. We should therefore struggle here after 6 months of strong gains and it may not be wise to run shorts any further in case we hit selling pressure.

If attempting shorts here we would use a stop above 1.3580.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More