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eurusd long term perspective – Monthly Chart Analysis 01/2012

eurusd long term perspective – Monthly Chart Analysis 01/2012

EUR/USD Monthly Chart Analysis – Higher Timeframe Support and Resistance Levels

eurusdThe attached monthly timeframe chart shows the EUR/USD currency pair from a high level perspective with the longer term support/resistance and price dynamics. 

  • It is interesting to see the previous interaction with the lower Bollinger band which has confluence with the 50% retrace of the major swing from October 2000 through July 2008 when referencing this monthly chart.
  • The 1.2350 area horizontal line has given price pivot support on numerous occasions and is an area that we will be watching for price action if reached.
  • EUR/USD is currently 1.99% down on the current month.
  • The average range over 24 months has been 760 pips.  We are half-way through January with a current range of 455 pips which is 59% of the average monthly range for EUR/USD.  
  • A continuation move to the downside,which covered the aforementioned average monthly range, would take EUR/USD down to 1.2368 and very close to the horizontal support level.  We will not be looking for any longer term perspective EUR/USD counter trend opportunities until price gets to this level at the very least – unless there is a significant change in the fundamentals.

eurusd long term perspective 2012 forex

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