EUR/USD: Sell orders around 1.3040

by Admin

The initial optimism of European opening is being wasted by a series of rumors that included a German downgrade and a fat finger in local share markets that sent DAX heavily down, although the EUR/USD managed to hold its recent gains. However, price retraces from 1.3200 area and quickly approaches 1.3150 static support. The 4 hours chart shows price consolidating well above 20 SMA, that converges with the Fibo support around 1.3110 and momentum above the 100 level still quite close to its midline. The mentioned 1.3150 support area should attract buyers and put the pair back in the bullish track, heading short term towards 1.3190 price zone. Key resistance is up at 1.3220, 50% retracement of its latest daily fall.

On the other hand, Pound is being smashed on worse than expected employment figures, and dollar pressures higher against most rivals: will the EUR resist? Sell orders are reported to be around 1.3040 and below, with an immediate target of 1.3100/10. Once below this last, 1.3040/50 area comes next.

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