EUR/USD approaches year-end near long-term highs
James Chen December 18, 2013 9:13 PM
<p>Due to the holiday period, there will be no regular market analysis updates on the City Index website until Thursday, January 2, 2013. December 18, […]</p>
Due to the holiday period, there will be no regular market analysis updates on the City Index website until Thursday, January 2, 2013.
December 18, 2013 – EUR/USD (daily chart) has maintained its month-long ascent and has approached 1.3830, which is close to the two-year high that was established in late October.
The pair spent the better part of 2013 within a general trading range consolidation between 1.2750 support to the downside and 1.3700 resistance to the upside. For much of the first half of the year, it wallowed in the lower half of this range. Only in July did it begin a substantial climb that was to hit the noted long-term high at 1.3830 by late October.
From that high, the pair plunged down to a low around the 1.3300 support level in early November, which also happened to be the key 50% Fibonacci retracement level of the bullish run from 1.2750 up to 1.3830. The pair then abruptly rebounded from 1.3300 to begin gradually grinding its way higher. Early December saw a re-break above the 1.3700 level to target the noted 1.3830 high once again.
Currently, EUR/USD has approached year-end having maintained its gains so far and continues to carry a significant bullish bias – pullbacks notwithstanding. Price is currently well above its 50-day moving average, which is, in turn, well above its 200-day moving average – a significant bullish indication.
To the upside, the major price objective resides at the 1.4000 psychological resistance level. Any move above that level should begin targeting 1.4250, a key historical support/resistance level.
On any further pullback of the current uptrend, short-term support within the bullish trend resides around 1.3700 and 1.3600.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.