EUR/USD Hits New four-Month Low then Rebounds

<p>EUR/USD (daily chart) as of April 4, 2013 has hit a new four-month low at 1.2744, dropping slightly below its prior low of 1.2750 that […]</p>

EUR/USD (daily chart) as of April 4, 2013 has hit a new four-month low at 1.2744, dropping slightly below its prior low of 1.2750 that was hit just last week. After that low was hit, price rebounded on an intraday basis back up to the tentative 1.2880-area resistance thus far. The new low hinted at a potential continuation of the entrenched bearish trend that has been in place since the early February high around the 1.3700 handle. The medium-term downtrend has seen little in the way of significant upside corrections, as the euro has continued to be weighed down substantially for the past two months.

Having reached its downside target of 1.2800 last week, and then consolidating around this target level since then, in the event of continued bearish pressure after the rebound, price could move towards further downside objectives around the 1.2650 and then 1.2450 support zones. Major upside resistance continues to reside around the key 1.3000 level.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.