Technical forecast for EUR/USD

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

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