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Forex pairs in this Article » EUR/USD (Edinburgh) - Sudden buying interest is now lifting the shared currency to fresh highs against the greenback, with the EUR/USD bouncing sharply from 1.3010/15.

EUR/USD well contained by 200-day ma

Pullbacks in the pair seem to be well contained in the proximities of the 200-day moving average around 1.3040 on Monday, as market participants are digesting the mixed results from the euro area and the positive data from the US manufacturing sector. In the view of Eric Theoret, Strategist at Scotiabank, “resistance is strong above 1.3050 given the convergence of 50, 100, and 200 day MA’s between 1.3069 and 1.3078. Downside risk remains elevated, as momentum, short-term trend, and directional indicators are suggestive of decline; 1.3034 marks the 61.8% Fibo retracement of the mid-May to mid-June rally. A close below this level would increase the risk of a decline back toward 1.28’.

EUR/USD levels to watch

As of writing, the pair is advancing 0.34% at 1.3058 with the next resistance at 1.3103 (high Jun.28) ahead of 1.3115 (MA30d) and finally 1.3151 (high Jun.25). On the downside, a break below 1.3004 (low Jul.1) would open the door to 1.2991 (low Jun.28) and then 1.2985 (low Jun.26).
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