Euro vs US Dollar Stalls Climb Near Strong Resistance

<p>EUR/USD (daily chart) as of November 29, 2012 has tentatively stalled its rise of the past two weeks near a strong confluence of resistance. The […]</p>

EUR/USD (daily chart) as of November 29, 2012 has tentatively stalled its rise of the past two weeks near a strong confluence of resistance. The resistance factors include both the key 1.3000 level and a long-term downtrend resistance line extending back to the May 2011 high at 1.4937. Price has consolidated under this resistance confluence for the entire trading week thus far. Because of the significance of this 1.3000 resistance, any bullish move that breaks out above it could carry the upside follow-through to extend the short-term uptrend with near-term potential resistance around the 1.3170 level. Further to the upside resides the key 1.3500 level, which could potentially serve as a further resistance objective. In the event that 1.3000 resistance holds, key downside support on a bearish correction potentially resides around the 1.2800 level.

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