EUR/USD languishes on pullback
James Chen March 27, 2014 6:26 PM
<p>EUR/USD (daily chart) has declined to its 50-day moving average and continues to languish significantly below its long-term high of 1.3965 that was established just […]</p>
EUR/USD (daily chart) has declined to its 50-day moving average and continues to languish significantly below its long-term high of 1.3965 that was established just two weeks ago. After that high was reached, just short of its 1.4000 psychological target, the currency pair has pulled back and consolidated just above both the noted 50-day average and the 1.3700 support level. This currently places EUR/USD still well within the boundaries of the bullish trend that has been in place since July’s double-bottom low near 1.2750.
The 50-day moving average has provided support for the generally rising pair since mid-February and appears currently to be doing the same. If this support is breached with a further breakdown below the noted 1.3700 support area, major downside support resides around the 200-day moving average and then the key 1.3500 level. 1.3500 is not only an important support/resistance and psychological level, but is also around the 38% Fibonacci retracement of the current uptrend from July’s 1.2750-area low up to the 1.3965 high two weeks ago. The major upside resistance targets on any bullish trend resumption continue to reside around the 1.4000 and then 1.4250 levels.
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.