EURUSD Technical Analysis Update – March 5th 2013
- EURUSD has printed an inside day candle after moving as low as 1.2981, but ultimately closing above the 1.3000 round number area on the D1 timeframe.
- The European common currency has traded within a near 50-pip range versus the dollar throughout Monday, closing near the highs.
- Price is currently trading around 1.3024. To the upside, the nearby 1.3040 -50 zone marks the lows from the 27th/28th February respectively.
- The 1.3150 area is a key pivot, as seen on the D1 chart below. Any sustained upside move would need to contend with this technical level.
- A break to the downside would potentially see the highlighted Fibonacci 50% and 78.6% confluence area, around 1.2890, as a focus, this is also a previous pivot area.
- Positive sentiment toward the greenback has gained momentum over recent weeks with Italian-induced risk aversion affecting the euro. With this in mind, any EURUSD move higher is viewed as near term countertrend. However, the failure to take 1.3000 by the EURUSD bears could potentially see a minor corrective move to the upside.
Nick Simpson, Forex-FX-4X.com, EURUSD analysis