EUR/USD Analysis 19th December – FX Technical Analysis Update
- Euro/dollar has seen a continuation of the breakout above 1.3170 area resistance, with risk appetite still firm, and is now approaching the FE100 expansion from the 1.2661 > 1.3125 > 1.2875 swing extremities. This is located around 1.3337 and just over 40 pips under the previous resistance area at 1.3380.
- If price can move above this point the key confluence area at 1.3500 comes into focus with the 50% retrace and previous resistance (as per the D1 chart below) closely aligned.
- A failure to sustain the current upside momentum brings the 1.3170 area prior resistance into focus once again as potential support. Just below this level is the descending trend line which could likewise potentially see an element of support.
- Any major change in sentiment and resulting downside has the ascending trend line (see chart below) closely aligned with the 1.3000 handle as a key technical point of interest.
- In related markets we note that cable has found initial resistance at the 1.6300 handle. Our previous GBP/USD analysis update pointed this out as a significant double rejection resistance area. The EUR/GBP has gained accordingly as cable upside was capped. EUR/GBP is trading as a level not seen since May around 0.8165.
- The price of gold is marginally lower on the day, after a drop of around $28/oz yesterday to the $1670.90 level (gold technical analysis) - this marked a 3 1/2-month low.
EUR/USD Analysis – 19/12/2012 – Daily Chart (Click to expand)
EUR/USD Technical Report/Forecast/Forex Price Action Analysis.