EUR/USD Tentatively Stalls Bearish Correction
James Chen February 11, 2013 7:40 PM
<p>EUR/USD (daily chart) as of February 11, 2013 has tentatively stalled in its bearish correction of the last week. This correction brought the price down […]</p>
EUR/USD (daily chart) as of February 11, 2013 has tentatively stalled in its bearish correction of the last week. This correction brought the price down substantially from its 14-month high slightly above strong 1.3700 resistance in the beginning of the month. Although this correction has been significant, it only represents approximately a 50% Fibonacci retracement of the last major bullish run (between 1.3000 in the beginning of January to 1.3700 in the beginning of February), thus far.
As price currently stands, fluctuating below 1.3400, EUR/USD is still well within the confines of a strong bullish trend that extends back to the 1.2040 area low in July of 2012. In the event of further weakening within the current bearish correction, key near-term support resides around the 1.3300 price region. A bounce at or above this area could once again prompt a trend move back up towards 1.3500 and then 1.3700. To the upside, a breakout above 1.3700 would be the key event to watch for, as it would signify and confirm a continuation of the entrenched bullish trend.
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.