EUR/USD – Expect some Near-term Resistance Around 1.3160

by Admin

Awards 2013

EUR/USD 4H chart 10:10AM EDT 4/10/2013

EURUSD

Bullish continuation: After a brief pause at the 38.2% retracement level during the 4/10 session, the EUR/USD extended to a new high for April during the 4/11 session. This developing bullish trend from the 1.2744 low has been intact, with the 4H chart showing higher highs and higher lows throughout the swing. As we get into the 4/11 US session, we should note that there is a support/resistance pivot in the 1.3160-1.3165 area that could provide some near-term resistance during the session.

Momentum: The RSI has tagged 70 several times, reflecting a persistent bullish momentum. As it climbs above 70 again, we might expect some near-term stalling as well especially in confluence with price testing the above mentioned pivot area of 1.3160/65.

As the trend is bullish, we might not want to fade aggressively, or even at all. Buying on dips could be a more viable strategy. A previous support around 1.3050 could come back in play. More upside aggressive targets for the rest of this week and the next:

50% retracement = 1.3227

61.8% retracement = 1.334