EURUSD Technical Analysis Update – 18th January 2013
- The EURUSD pair retraced recent losses on Thursday as the EUR is once again outperforming its currency major counterparts on improved sentiment in Europe. Significant gains have recently been seen on the EURCHF, EURGBP and EURJPY currency pairs amongst others.
- Price has ultimately found strong support in the EURUSD 1.3250 – 1.3280 zone this week, after dipping under 1.3300 area prior resistance.
- The recent range highs around 1.3400 are the near term focus – with initial hesitation seen in this area seen during early trading in the 18/1/13 European session. As noted in our recent updates, this area likewise acted as resistance during March/April 2012.
- The 1.3500 handle and nearby 50% correction point remain as a key technical area of interest in the event of further EURUSD upside over the coming sessions.
- Any shift in sentiment towards the EURUSD pair, and associated downside, has us monitoring the 1.3275 and 1.3150 areas going forward as per the (D1) chart below.
- The EURUSD upside this week is based on euro strength, as the US dollar index is likewise trading higher on the week at 79.79 from a 79.49 area open.
EURUSD Forecast, EURUSD News, EURUSD Outlook 18th January