Forex-FX: 23rd November – EUR/USD Technical Analysis Update – Euro/Dollar
(EURUSD Analysis Update – 22/23rd November 2012, Forex-FX-4X.com)
- Euro/dollar has now seen an extended move above the 200 period SMA and near term range resistance highs. This upside price action also marked a push above the 1.3138 -1.2662 38.2% retrace and trend line resistance area, as can be seen on the EUR/USD daily chart below.
- Price is now testing the previous support lows around 1.2880, with the closely aligned 50% corrective retrace level as technical confluence.
- Heading into the 23rd November trading sessions, we will be monitoring the 1.2800 area on any pullback to this key area, which has recently seen price-pivot action.
- The near term bottoming we are currently seeing initiated after the bullish pinbar formed on the 13th Nov. This EUR/USD upside has been seen on continued signs of increasing risk appetite. Nonetheless, the fundamental backdrop in Europe brings the constant threat that the market could see a swift change in sentiment at any given time.
- There is always the corrective risk of a drop back down into the recent range but the 1.3000 level is likewise a focus. Any prolonged upside would need to breach the 1.3000 area, a significant technical level for this pair.
- When referencing related currency crosses, we note the euro experienced broad based gains. The EUR/JPY hit a near seven-month high and is currently trading at 106.27 and +0.37%. EUR/GBP has also extended recent gains and is now trading almost 80 pips above the 0.8000 psychological round number area.
EUR/USD Analysis – Daily Chart – 22-23rd November Update
Forex-FX-4X.com: EUR/USD Technical Analysis Report – Euro/Dollar Outlook 23rd November.