EURUSD Technical Analysis 14th November

(EURUSD Analysis Update – 14th November 2012, Forex-FX-4x.com)

The EURUSD pared back previous losses seen during Tuesdays trading session and ultimately closed the day only marginally lower, forming a small pin bar in the process.  The size and placement of this price action setup does not neccesarily have us looking for prolonged upside, but it does give a hint that downside momentum could be dissipating in the near term. The fundamental backdrop in Europe is hardly supportive of an extended move higher but in the near term the price action is hinting at a lack of downside momentum.  A move under the pin bar low would have us challenging this view.

If we are to see a continuation of the corrective rally today the EURUSD bulls need to break above the 1.2740 area resistance, which capped price on Monday, and is an area that aligns with the June swing high (see far left of chart). 

Further to the above, the following potential EURUSD resistance levels are noted:

• The 1.2773 level is the 23.6% retrace of 1.3138 - 1.2662.
• 1.2803 was the previous swing low prior to the 5/11/12 breakout to the downside and the 200SMA is closely aligned.
• The area around 1.2830 is a price pivot zone.

• Price moved to a two month  low of 1.2661 yesterday before seeing support, this area may provide an element of demand if price resumes its mid-term trend and moves to the downside.
• The 31st August 1.2637 daily high is roughy aligned with the 100 period SMA,
• Any swift change in sentiment and subsequent drop lower brings the 50% retrace just above 1.2600 back into focus.

EURUSD Analysis – D1 Chart

Euro/Dollar Outlook/Technical Report – 14/11/2012