EUR/USD attempts another advance

<p>EUR/USD (daily chart shown below) has rebounded once again from the key 1.3700 support area to emerge above its 50-day moving average. This rebound occurs […]</p>

EUR/USD (daily chart shown below) has rebounded once again from the key 1.3700 support area to emerge above its 50-day moving average.

This rebound occurs after the currency pair recently made a 2% pullback from its long-term high of 1.3965 that was established almost four weeks ago.

Since the current bullish trend began from the 1.2750-area double-bottom low in July 2013, price action has dipped below its 50-day moving average on at least four separate occasions, only to recover and establish new highs each time.

The current dip and rebound could present more of the same.

EURUSD technical analysis chart 09.04.14

Major downside support continues to reside around the noted 1.3700-area, at least for the short-term.

If the pair is subsequently unable to hold this key level, further downside support within the current bullish trend resides around the 200-day moving average and then the major 1.3500 support area.

In the event of further upside momentum off the current rebound, the key level to watch remains around the noted 1.3965 high.

On any breakout above that important level, an uptrend continuation will have been confirmed with further upside targets around the 1.4000 and 1.4250 resistance levels.

 

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.