EUR/USD – Bearish Continuation with 1.2660-1.2680 in Sight

by Admin

Awards 2013

EUR/USD 1H chart 7:51AM EST 3/27/2013

EURUSD

Bearish continuation: The 1H  EUR/USD chart shows a EUR/USD breaking below a near-term consolidation range. As we get into the 3/27 US session, the market might be oversold in the near-term, but it is signaling a continuation of a medium term down trend since the 1.3710 high on 2/1. A pullback might find resistance around the previous support at 1.2827. However if the pullback climbs back above 1.2850, we might be getting back to consolidation mode in the near-term.

Target/support: As the market continues to fade the EUR/USD, where might we expect some demand?  As we turn to the daily chart, we see the price action dipping below the 200-day SMA and below the 50% retracement of the 1.2410-1.3710 (July-Feb) rally. There is a support pivot and November low at 1.2661 and a 61.8% retracement level at 1.2678. Thus we might expect some support in the 1.2660-1.2680 area, or look at this area as a possible short-term target.

EUR/USDDaily chart 7:55AM EST 3/27/2013

EURUSD