Currency Analysis – Positive Data Has EURUSD Rejection From 1.3000 Level
- The Euro moved to the upside versus the U.S. dollar as reports advise the ECB is exchanging Greek bonds for new securities. The common currency likewise benefited from news that jobless claims have fallen to the lowest level seen in four years.
- Key near term 1.3024 support was broken on the intra day basis, as was the 1.3000 psychological round number. The resulting move higher after the aforementioned positive data was likely fuelled by short covering as the strong downside price action was abruptly reversed.
- This upside reversal began almost to the pip at the 50% retrace of the last wave. The 4 hour RSI (Relative Strength Index) had likewise moved into oversold territory.
- The 1.3213 area has proved to be resistance on previous attempts to move higher and could potentially provide the same again.
- The 1.3320 area will now be in focus for EURUSD bulls – this level provided a bounce lower of over 300 pips when recently hit.
- Support could potentially once again be seen around the zone between 1.3000 and 1.3020.
- ADR over 60 days is 131 pips with today seeing 181 pips on increased volatility.