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  • EUR/USD Trading at Near-term Resistance

    From forexminute.com

    EUR/USD pushed to a new low on the year at 1.2165 yesterday. US GDP in Q3 advanced at an annual rate of 5.0%. This data release strengthened the USD across the board, and the EUR/USD fell. Resistance Holding: The 1H chart shows the market stalling after hitting 1.2165. It then came back up and hovered around 1.22 during the 12/24 session so far. As we got started in the US session, we saw a push to the upside, which failed, and respected the 50-hour simple moving average (SMA), and a falling speedline. The 1H RSI was also held below 60, showing maintenance of the bearish momentum so far, even in the intra-session ... (full story)

WE may be seeing 1.20xx before the year ends.
That will be interesting to see - another twist in the tale

- Fan
Originally, my 2014 target was 1.2000. However, earlier this month, the USD weakened a bit due to, I think, a risk-off mentality associated with the Russian economy, which caused some flight from U.S. markets to the Yen, with the result being some Greenback weakness and a bounce in EUR/USD (which I unfortunately, did not catch, having been preoccupied with other trades). That could be the only reason the pair is still currently above 1.2000.

I think it is likely that 1.2000 will give way in short order, if not at the end of this year due to light holiday markets then at the beginning of the next and that the next level to watch will be the 2010 low of 1.1875 and then 2005 low of 1.1640.

Naturally, markets will have the final say on this, but against a backdrop of increasing Fed tightening and increasing ECB easing, the likely outcome is that the downward trend will continue for the foreseeable future ... . So, for my part, I am going to continue to sell on bounces until something fundamental changes.
Fireworks are fun ... as long as you don't blow your fingers off.
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  • Posted: Dec 24, 2014 10:19am
  • Submitted by:
     ForexMinute
    Category: Technical Analysis
    Comments: 3  /  Views: 2,556