EUR/USD Technical Update/Price Action Analysis – 24th December
- The 1.3300 area swing high pinbar from last week was followed by a drop of around 60 pips and a test of the recent range highs. Euro/dollar subsequently found an element of support after the decline to previous 1.3171 area resistance.
- The swing lower found a bid just above the EUR/USD 1.3138 17/10/12 daily high, an area which is now closely aligned with the 38.2% Fibonacci retrace level as per the D1 chart below.
- Price is currently trading around the pinbar lows once again and the 18/12/12 high. The prevailing trend, heading into year end, has been bullish. However, a sustained continuation above 1.3307 is now needed in order to negate this pinbar.
- A break above this area brings the highlighted FE100 expansion level into focus. This is drawn from the 1.2661 > 1.3125 > 1.2875 swing extremities and located around 1.3337. Further to this are the following EUR/USD upside technical levels.
- Previous resistance at 1.3380.
- The 1.3485 29/2/12 significant swing high is just under a 50% corrective retrace and the 1.3500 psychological round number level.
- Any near term downside move needs to contend with the following levels.
- 1.3171 previous range high resistance.
- The 38.2% Fibonacci retrace level just above the 1.3125 previous high.
- The 1.3100 handle just above the 13/12/12 daily high and aligned with a 50% ret.
- Illiquid trading may now be the theme, heading into the year end, with many market participants finished for 2012.
EUR/USD Analysis – Daily Chart 24/12/12
EUR/USD Technical Report, Free Forex Analysis, Forecast, Technical levels, Sentiment.
