EUR/USD Technical Analysis – 30th November Outlook (Forex FX 4X)
(Forex-FX-4X, Euro/Dollar Analysis For 30th November)
Our previous EUR/USD technical update focused on the bearish engulfing line which had formed around the 1.3000 handle. The initial level we had identified as potentially providing support was around the 1.2885 area; price has subsequently dropped as low as 1.2879 – before seeing a resumption of the near term uptrend – and is once again challenging the key 1.3000 psychological level. 1.3000 is now aligned with a long term descending trend line, which began at the 1.4939, May 2011 daily high (see fig 2).
Euro/Dollar Technical Overview/Key Levels
- 1.3000 has once again held as resistance after the market took out stops above 1.3008, the previous one-month high.
- A push higher and strong close above 1.3000, during the upcoming 30th November trading session, would likewise represent a close above the descending trend line (adding an element of bullish weight).
- Any sustained upside would need to break above the 17/10/12 1.3140 area swing high in the first instance and the 1.3170 17/9/12 area highs if the EUR/USD is to move markedly higher.
- In terms of potential near term supportive levels. The PPZ (price pivot zone) around 1.2880 may once again see an element of support if the EUR/USD bulls can’t take out 1.3000 in the upcoming trading sessions.
- The 1.2800 – 1.2830 area is the next key downside zone on a failure to hold above this initial 1.2880 area PPZ. 1.2800 also has the 200 day SMA (simple moving average) as confluence.
- In related EUR crosses, the EUR/GBP is trading close to the five-week high at 0.8088, the EUR/JPY is trading marginally higher on the day around 106.50 and the EUR/AUD has taken out recent 1.2420 area range highs and looks set to close the month near flat, after paring back most of the previous drop of around 300 pips.
EUR/USD Daily Chart (figure 2)