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EUR/USD Breaks The Barrier Of 1.3400

January 25, 2013 8:40 am GMT+0  in Chart Alert

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EUR/USD breaks over 1.3404After briefly touching 1.3404 on January 13th, EUR/USD could not sustain the upward gains and fallen strongly. The pair had gone into a very volatile sideways mode since then but each attempt of breaking over 1.3400 has been failing since then. The previous strong resistance level was 1.3385 and a break over that had clearly indicated that further upwards gains could be expected as indicated on January 12th’s EUR/USD chart update.

 

EUR/USD’s break of resistances

EUR/USD - Next resistance

The next important resistance is now at 1.3486. That is very critical as it is just below the psychological level of 1.3486. Not only that but as we had mentioned in the above mentioned alert, 1.3486 also has a prior history of acting as a strong resistance. In case EUR/USD breaks over that resistance then the market would be watching for a test of 1.3590 which represents the 61.8% retracement of the downward move from 1.4549 of August 29, 2011 to 1.2042 of July 24, 2012.

EUR/USD and 61.8% retracement

EUR/USD Weekly chart - 618 retracement

 

Author Info

Avatar of Himanshu

Himanshu, by qualification a mechanical engineer with diversified experience of working in Europe and Asia Pacific, has been trading in Forex market for close to a decade. Himanshu also runs one of the fastest growing Forex portal ForexAbode.com which provides free Forex trading analysis, forecast & strategies, free trading tools, education, Forex Blogs and Forex Forum and contributes the analysis to financial and Forex websites like SeekingAlpha.com, MarketOracle.co.uk, ForexStreet.net, CountingPips.com, International Business Times and some more. Contact details: You may please leave your suggestions, comments or complaints using the comment form or write to us using the Contact Us page. You may also connect the author on Google at +Himanshu Jain

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