EUR/USD Price Action/Technical Analysis Update For 14th December
(Euro/Dollar Technical Report, Forecast, 14th December, Forex-FX-4X.com)
- EUR/USD is trading near flat on the day after the strong push above the 1.3000 handle yesterday and three prior consecutive up days. The price action today comes post the FOMC update regarding further stimulus measures, which had put the dollar under renewed pressure. The initial Fed impact has subsequently been dampened by a lack of progress on the fiscal cliff.
- Price is now trading close to the 1.3100 area prior swing high and descending trend line resistance area with a marginal 0.03% daily gain at present. A close around this level would see a doji candle marking near-term indecision. This comes at an area which has seen significant supply dynamics over recent trading sessions.
- We note that there has been multiple tests of the daily resistance high area around 1.3100, as per the fig 1 chart below (hour 1). We will now be monitoring this area for any breakout or price action reversal scenarios over the 14th December trading sessions.
EUR/USD H1 Chart – Fig 1
- Near Term EUR/USD Technical Levels And Tactical Points Of Interest
- Any downside move from the current resistance area would need to contend with the following technical levels:
- 1.3040 – 13th December low and just under a 23.6% corrective retrace level.
- 1.3000 – psychological round number area with the 1.3014 38.2% retrace level just above.
- 1.2930 – daily chart ascending trend line, potential touch.
- Any upside continuation move brings the following areas into focus:
- 1.3099 – 13th December high aligned with 1.3100 round number.
- 1.3125 – 5th December high and bearish outside candle weekly high.
- 1.3138 – 7th October swing high.
- 1.3167 – 14th September daily high and a 7-month high for the euro/dollar.
- In related markets we note that the GBP/USD is down -0.23% on the 13th Dec, on potential profit taking and with the U.S. fiscal stalemate a key focus; this has the EUR/GBP up 0.27%. The EUR/JPY is up 0.48% on extended JPY weakness.
- European equity markets have seen mixed results on the daily basis with the FTSE 100 down -0.4%, the DAX down -0.6%, the French CAC down -0.3% and the Italian MIB and Spanish IBEX up +0.3% and +0.6% respectively. The U.S. S&P500 closed down -0.53%.
EUR/USD Technical Update For 14th December 2012 – Daily Chart – Fig 2
EUR/USD Forecast For 14th Dec, Forex-FX-4X.com blog