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EUR/USD Technical Analysis Update – WC 10th December

EUR/USD Technical Analysis Update – WC 10th December

EUR/USD Technical Analysis Update – WC 10th December

(Euro/Dollar Weekly Analysis, Forex-FX-4X.com, Week Of 10/12/12)

The EUR/USD currency pair moved to the 1.3100 previous resistance area earlier this week before a fresh wave of selling ensued, with speculation of a potential ECB rate cut ahead weighing heavily on the shared currency.  The sharp decline has cut through the 1.3000 psychological round number level, adding bearish weight to the move, before ultimately finding an element of support around the 1.2875 area PPZ (price pivot zone).

This comes as the latest Commitments of Traders (COT) report shows a EUR net short position at 33K versus the 67K reading seen last week, as speculators covered short EUR FX wagers – which does not reflect the aforementioned bearish price action over the back end of the week.  

The key near term EUR/USD technical levels we will be monitoring in the coming week are as follows:

  • To the downside, the 1.2875 area PPZ has confluence with the 50% retrace – as highlighted on the Figure 1, daily time frame EUR/USD chart.  This marked the low on Friday.
  • Further to this is the 61.8% Fibonacci retrace around 1.2838, this area gave significant support in September/October.
  • The 200 SMA is located just under 1.2800 with the 100 SMA around 1.2730.
  • To the upside, the key 1.3000 handle failed to provide much in the way of support on the way down, but is an area we will monitor on any move higher next week as potential resistance.
  • An extended move higher would have us watching the price action around this week’s high at 1.3125.
The weekly chart (figure 2) has printed a bearish engulfing candle, which also resembles a pin bar type formation with a protruding upper shadow.  Any confirmation move below this weeks low potentially brings the 1.2670 area back into focus – if the levels referenced above are taken out in the first instance.
eurusd EUR/USD Technical Analysis Update   WC 10th December

EUR/USD D1 Chart - Figure 1

eurusd analysis 10th december EUR/USD Technical Analysis Update   WC 10th December

EUR/USD W1 Chart - Figure 2

eurusd weekly analysis 10th december EUR/USD Technical Analysis Update   WC 10th December

(Euro/Dollar Forex Technical Analysis, Forex-FX-4X.com)

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