What a last few weeks the Euro has had. Not so long ago we were waiting for it to move through 1.26 as it met stiff resistance there. A move back towards 1.30 seemed likely however it was also reasonable to expect some more stiff resistance to emerge at that level considering it provided significant support for the Euro way back in February to April. This didn’t seem to occur as the Euro cruised up to 1.30, stopped for several hours and then continued right on moving towards 1.32.
As the Euro has retraced from its highs near 1.32, the 1.30 level emerged again as a level of significance and it was able to provide some support however in the last 24 hours it has broken down through there.Â Â (Daily chart / 4 hourly chart below)
4 hourly chart
|Â Â Sep 21 at 02:45 GMT|
|1.2967/68||Â Â H: 1.3014||Â Â L: 1.2919|
- During the early hours of the Asian trading session on Friday, it appears as if the Euro/dollar is taking a breather after its rapid movement in the last few days, by trading within a narrow range between 1.2960 and 1.2980.
- There are now severel levels likely to offer support over the longer term having recently moved through several strong resistance levels. Eg. 1.24, 1.26 and 1.28.
- Current range: Consolidating above 1.2900.
Further levels in both directions:
- Below: 1.2900, 1.2800, and 1.2600.
- Above: 1.3000, 1.3150, and 1.3300.
- UK 8:30 (GMT) Public Borrowing (PSNB ex interventions) (Aug)
- CA 12:30 (GMT) CPI – BoC core rate (Aug)
- CA 12:30 (GMT) CPI (Aug)
- CA 12:30 (GMT) Wholesale Sales (Jul)