EUR/USD Technical Analysis Update – WC 17th Dec
(Forex-FX-4X.com, EUR/USD Technical Analysis, Week Of 17th December 2012)
- The EUR/USD broke marginally above the previous 1.3171 range resistance zone last Friday, closing the week at a key technical point comprised of price structure highs and the longer term 38.2% Fibonacci retrace level (see fig 2 weekly chart).
- A sustained move above this area would be a constructive technical development for the EUR/USD pair. With this in mind price action around 1.3170 could help give a near term directional bias; the corrective risk remains for a reversion back into the range on any failed breakout and we will be monitoring for any clearly defined reversal/continuation setups around EUR/USD 1.3170.
- When key technical levels are under threat we often check the longer timeframe charts to gain a perspective. If price can move markedly higher, we will be referencing the following weekly timeframe EUR/USD Fibonacci levels (fig 2).
- The 1.3355 area marks the 61.8% Fibonacci expansion of euro/dollar 1.2026 > 1.3157 > 1.2661. This is aligned with the weekly 25/3/12 range highs.
- The 50% corrective retrace of 1.2661 > 1.20416 is closely aligned with the 1.3500 round number and presents a key technical area.
- Any significant move higher, over the coming months, would bring the 1.3800 area 61.8% retrace and FE100 levels into focus as key tactical levels of interest.
- In the near term, any retrace could potentially see the 1.3125 (fig 1 chart) previous resistance area acting in a supportive capacity. Further to this is the 1.3000 round number level and the ascending trend line, which would currently take a move to around 1.2950 in order to be hit.
EUR/USD Technical Analysis – Daily Chart – fig 1
EUR/USD Technical/Fibonacci Analysis Weekly Chart – fig 2
EUR/USD update 17/12/12, Forex Price Action/Fibonacci Levels, Euro/Dollar Technical Analysis Report
