What The Charts Are Saying For EUR/USD?
February 9, 2013 in Chart Alert
EUR/USD fell very strongly after touching 1.3711. Well, it was half way between the big psychological level of 1.3500 and the bigger psychological level of 1.4000. This kind of fall had to come before the pair dare to touch the big guns at 1.4000. It just came a bit before the expected 1.3820 level.
What do the charts say?
55-day EMA is our favorite and we are not the exceptions. Its kind of common. But the recent history of EURUSD price action shows that the support has been coming just below 55-day EMA and near 75-day EMA. The current 55-day EMA is near 1.3319 and the current 75-day EMA is near 1.3256. The red EMA line in the chart below is 55-day and the light blue one is of 75-day EMA and support can be expected near either of these.
EUR/USD daily chart with EMAs
What if these supports do not hold?
The next critical support should be at 38.2% retracement of the upward move from the low of 1.2042 to the recent high of 1.3711. Hence the next support can be expected near 1.3060/1.3075.
EUR/USD 38.2 % retracement
Please also check the regularly updated EUR/USD outlook.