Forex: EUR/USD: 1.4220, guide for direction - CharmerCharts
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EUR/USD
FXstreet.com (Barcelona) - The Euro bounced up from 1.4070 lows to reach highs around 1.4340 on Friday, and the pair is giving away gains, reaching 1.4220 area at European session opening times, a key level to assess near term direction for the pair says Carol Harmer, technical analyst at CharmerCharts.
On the upside, the pair could bounce back to 1.4340, says Harmer: "So we use 1.4220 as a guide to direction. I think this will hold given the oversold conditions and we should then be able to push higher to 1.4340 once more. This would ease the oversold scenario thus leaving us liable to downside moves with 1.4220 once more targeted."
On the downside, loss of 1.4220 could drive the pair back to levels between 1.4140 and 1.4070, according to Harmer: "If we then break 1.4220 we are looking at this coming lower with 1.4140 to 1.4070 the short
term objective. We are buyers here, holding longs unless we lose 1.4050."
On the upside, the pair could bounce back to 1.4340, says Harmer: "So we use 1.4220 as a guide to direction. I think this will hold given the oversold conditions and we should then be able to push higher to 1.4340 once more. This would ease the oversold scenario thus leaving us liable to downside moves with 1.4220 once more targeted."
On the downside, loss of 1.4220 could drive the pair back to levels between 1.4140 and 1.4070, according to Harmer: "If we then break 1.4220 we are looking at this coming lower with 1.4140 to 1.4070 the short
term objective. We are buyers here, holding longs unless we lose 1.4050."
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