Yesterday’s closing price for the EUR/USD had significant technical ramifications.
The EUR/USD closed below the rising support line from the November and December lows and finished the day well below the 200-day moving average. The selling of the pair was capped at 1.2970, the November 30th low which is the first support level. A breach below this level would open the door for further declines, with support coming in at the September 6th high at 1.2920, followed by the 61.8% Fib retracement form the June to November move at 1.2800.
The rising support line should now turn into a resistance level. This comes in today at 1.3110. Further resistance is found at the top of the December to January consolidation pattern at 1.3440.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
