EURUSD Technical Analysis – FX Price Action Update – WC 7th Jan
- Euro/dollar moved as low as 1.2996 on Friday, subsequently finding support around the 1.3000 round number area. This came after the bearish outside day on Wednesday proved to be a decisive near term EUR/USD turning point.
- Any continuation of Fridays upside move would need to contend with the following EUR/USD technical levels:
- The 1.3110 – 1.3125 zone represents the areas between a 38.2% retrace of 1.2660 > 1.3307 and the 5/12/12 daily high.
- 1.3150 is roughly aligned with the range support lows from mid December through early January. This is likewise the 50% retracement point from the last leg lower.
- The area around 1.3300 marks the recent range highs for EUR/USD.
- A resumption of the predominant downside trend from last week brings the following technical points of interest, for the upcoming trading sessions:
- The 1.3000 psychological round number area and 50% correction point are closely aligned as can be seen on the D1 EUR/USD chart below.
- The 61.8% retrace of 1.2660 > 1.3307 around 1.2908.
- A price pivot area around 1.2878 which recently acted as support on two consecutive attempts to move lower on 28/11/12 and 7/12/12.
- We also note that the latest COT report data shows large speculators have now registered the first net long EUR FX (CME) position since Aug 2011. There were 5,126 net long contracts as of the 31st December in contrast to the previous reading of -2,549. However, this does not take into account the bearish price action seen this week, but nonetheless reflects the shift in longer term sentiment.
EUR/USD Technical Analysis – WC 7th January 2013 – D1 Chart
EUR/USD Technical Analysis, Forecast, Outlook for 7/1/2013 – 11/1/2013