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Forex pairs in this Article » EUR/USD (Chicago) - EUR/USD retraces at Tokyo’s opening, giving in the 1.39 zone after trading sideways for hours.

Expert’s view

According to Jim Langlands from FXcharts, In the longer term, the Euro is in the middle of the monthly cloud, which is not broad and which has a top at 1.3955. It has not been above the cloud since Oct 2011, so if we do head above it – on a monthly close basis, next week– the way is potentially open to much stronger gains. I don’t see it happening but we shall see. On the downside, minor rising trend support is at 1.3780, and below today’s 1.3760 low, 1.3710 becomes the first obvious support. Below there we will move back into the recent consolidation between 1.3500/1.3680 and the first Fibo levels are now to be found at 1.3652 (23.6% of 1.3125/1.3820) and then at 1.3547 (38.2%), both of which look pretty safe for the time being. The charts are beginning to show signs of becoming a bit overbought so I would not be getting too carried away on the topside unless 1.3825 is overcome. A weekly close not too far from current levels would not surprise in the absence of any major data today and I would use 1.3760/1.3830 as a guide.”

EUR/USD Technical Levels

Technically speaking, the pair is offered at $1.3794 and oscillates between supports aligned at 1.3763 (session lows), 1.3715 (January 20th highs) ahead of 1.3655 (October 3rd highs) with resistances at 1.3824 (session highs), 1.3873 (November 17th 2011 highs) followed by 1.3924 (August 20th 2011 highs). The pair seems to extend the upward trendline despite retracements at Tokyo’s opening.
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