EUR/USD Bullish Signal With Triple Resistances
April 8, 2013 in Chart Alert
After being in a volatile sideways range with the psychological support of 1.3000, EUR/USD had gone as low as 1.2745. The support came much ahead of the next psychological level of 1.2500 and the pair touched 1.3040.
We just got a bullish signal when 5-day EMA line moved over 22–day EMA line first time since February 9th. However the currency pair is up against 3 resistances.
EUR/USD daily chart
1) 55-day EMA: Though with a move to 1.3040 the pair tried to break the 55-day EMA resistance but could not sustain. The current price action is just below that level. The current 55-day EMA is 1.3021.
2) Psychological level of 1.3000: The brief break of 1.3000 could not sustain and the current price action is in a narrow range just below 1.3000.
3) 200-day Moving Average: Even if the above resistances are broken, a tough resistance of 200-day moving average will come next. The current 200-day moving average is at 1.3070.
We had posted an alert mentioning the possibilities of decline when the pair had broken the support of 200-day EMA Please check the previous EUR/USD chart alert.
Let’s see how the above levels worked as supports and resistances in the recent past.