EURUSD Gaps Lower But Holds

The EURUSD pair opened the week below the 1.29 handle, however it has held what was trendline resistance and the 21day moving average.

EURUSD Breaks 1.29

On a quick move early in the Nikkei session the EURUSD pair broke below the 1.29 handle momentarily and looks poised to continue lower to end 2011. There is little in the form of technical support for the pair beyond the trending Bollinger Band until the August 2010 lows around the 1.26 handle.

EURUSD makes it to yesterday’s close at 1.3081 and falls back off

As per the prior post (CLICK HERE), the EURUSD has managed to move above the narrowish 4 hour range and make its way to the 1.3081 level. This was the close from yesterday. On queue, the price has wandered back lower off the level.  

The 100 bar MA on the 5 minute chart is at the 1.3070 level and a move below that level should look toward the 1.3062 level. 

Needless to say, activity is somewhat light.  Intraday traders are likely to be happy with whatever they can get.  Look for two way action to dominate.

EURUSD Resisted by October Lows

On the old retracement below we see the EURUSD pair broke below the early October lows last week and rallied back to that level yesterday as positive Spanish bond auctions, German Confidence and some positional shifts helped the pair higher. In a relatively thin market this holiday season after a rollercoaster year for the Euro, a break above the October lows/100% should be resisted by the trending 21day mavg.

EUR/USD bangs against key resistance level at 1.3131-37.

The EURUSD is testing key topside resistance at the 1.3131-37 level. The level is the underside of a broken trendline (1.3137), the 38.2% of the trend move down (at 1.31315) and the 200 hour MA (1.3134) . For a closer look at the resistance area see chart below.

The downside support is now found at the 1.3095-03 area. This is the 38.2%/50% retracement of the last leg higher. Typically, a trend day (which is what we are seeing now), will hold support against the 38.2%/50% of the last leg higher. This is indicative of strong buying interest.

A move above the 1.3131/37 area should not be ignored.

EUR/USD triggers stops and move toward 200 hour MA/38.2% retracement

The EURUSD moved above the topside channel trendline resistance at the 1.3187 level and this helped ignite stops that has pushed the EURUSD sharply higher. The pair is moving toward key target resistance at the 1.3131/35 area where the 38.2% retracement of the move down from the December 8th high to the December 14th low is found. The 200 hour MA (green line) is also in the area at the 1.3135 level currently.

I would expect that longs would be willing to take profit against the level on the 1st test.  A move above however, would be indicative of stronger overall buying and should lead to further upside momentum.

On the downside now, I will look for support against the 1.3087-98 area now. Stay above the area, and the longs/bulls remain in control.  Conversely, w move back below the 1.3087 level would not be welcomed and should lead to some further liquidation.

Bobbys Corner-Open Market-December.7.2011

Good Morning:

Market participants mostly remained on the sidelines as we await the scheduled ECB meeting along with a EU summit scheduled for tomorrow.  News from the ECB that dollar demand via the swap auction was higher than expected, took a lot of the wind out of the EUR/USD pair.  It seems that the banking sector is still struggling to meet it’s funding obligations.
Yesterday’s 25 basis point drop by the Reserve Bank of Australiais the RBA’s attempt to keep the economic momentum in Austrailia moving forward.

World equity markets are mostly higher-but Europe is showing signs of a small sell-off-and US Futures are  higher at this point.

Gold, Silver and most metals are lower-while oil is also slightly lower.

HAVE A GREAT DAY & GOOD LUCK

EURUSD moves below Friday/Monday midpoint at 1.34547. 1.3433 is next target.

The EURUSD has rotated back below the 1st target at the 1.3454 level and will now look to continued the momentum toward the 1.3433 level. This is trendline support and also the old 38.2% of the move down from Friday’s high.

Looking at the shorter term 5 minute chart, the price also broke below trendline support at the 1.3457 level.  For the intraday bears looking for more selling, staying below this level keeps them satisfied that a test of the next target at the 1.3433 is likely.  A move back above the level, muddies the water and decreases the top sellers confidence.

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