>

EURUSD Technical Analysis – 6th May 2013 – Euro Dollar Weekly Update

May 6th, 2013
in contributors, forex

by Nick Simpson, Forex-FX-4X

  • Euro/dollar experienced a strong move back down towards the midpoint of the recent range on Wednesday after finding resistance at the 50% retrace of the last major leg lower from 1.3709 – 1.2744.
  • This move lower came after price broke above the 16/4/13 1.3200 daily high, trapping fresh longs, and moved to the highest point seen since late February prior to the drop lower.
  • The downside move has found support at an area comprised of the 200 SMA (simple moving average) and ascending trend line around 1.3040.

Follow up:

  • Any continuation of the move lower has the 1.3000 handle round number area as a key focus heading into next week.
  • The previous demand area low around 1.2950 is another technical area of interest with a 61.8% Fibonacci retrace level just 17 pips lower at 1.2933 - giving a technical confluence zone between 1.2933 – 1.2950.
  • Any move to the upside brings the following potential near term resistance areas:
    • the 1.3175 area previous resistance level
    • the recent range high point around 1.3241 just above the 50% retrace at 1.3225
    • the 61.8% Fibonacci retrace at 1.3340
  • Our previous updates have noted that the USDX was trading near to the 16/4/13 swing low around 81.70, a prominent technical area which previously gave support for the USDX.  This has once again proved to be a key pivot for the US dollar index.
  • We note that the latest COT report update has the EUR net short position at -30K versus the previous -35K reading.  This shows that large speculators had cut their net euro position. Long dollar positioning was relatively steady at $24.49 billion versus $24.94 billion for the prior week.

Click to enlarge

 









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.













 navigate econintersect.com

Blogs

Analysis Blog
Econintersect Features
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Live Market Commentary
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
Live Market Conditions
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2015 Econintersect LLC - all rights reserved