Euro vs US Dollar Bounces Off Strong Support Confluence
James Chen January 10, 2013 9:20 PM
<p>EUR/USD (daily chart) as of January 10, 2013 has made a substantial bullish bounce off key support in the 1.3000 price region. This 1.3000 area […]</p>
EUR/USD (daily chart) as of January 10, 2013 has made a substantial bullish bounce off key support in the 1.3000 price region. This 1.3000 area is also near an uptrend support line extending back to the July 2012 1.2041 low, which has defined the bullish trend for almost half a year. Additionally, the 100-day moving average resides right around this strong support confluence, as does the 50% Fibonacci retracement of the last major bullish run. With the bounce off 1.3000 support, price is not far under the strong resistance at 1.3300 that the pair has attempted but been unable to breach for the past three weeks. In the event of a breakout above 1.3300, which would confirm a continuation of the entrenched bullish trend, price could move towards further potential resistance to the upside around the key 1.3500 price region.
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