EUR/USD (daily chart as of October 22, 2013) broke above the previous
high of 1.3645 on October 17 with a very strong bullish candlestick,
and invalidated a possible short-term head and shoulders pattern. Price
then surpassed the key resistance of 1.3710 today on disappointing
non-farm payrolls data.
The U.S. only added 148K jobs in September, which is slower than expected. If there is no steady improvement on the job market, the Fed would hesitate to start its QE (quantitative easing) tapering, which is bearish for the dollar.
The currency pair is trading in an uptrend channel that extends back to July 9 (bold blue parallel lines on chart). The next upside target is located at the upper edge of the channel, which is currently around the 1.3800 level.
Support levels below:
1st support: 1.3710 (February 1 high)
2nd support: 1.3645 (October 3 high) or the daily EMA 20
3rd support: lower edge of the uptrend channel
Resistance levels above:
1st resistance: upper edge of the uptrend channel
2nd resistance: 1.4000 (key psychological level)
3rd resistance: 1.4250 (October 2011 high)
The U.S. only added 148K jobs in September, which is slower than expected. If there is no steady improvement on the job market, the Fed would hesitate to start its QE (quantitative easing) tapering, which is bearish for the dollar.
The currency pair is trading in an uptrend channel that extends back to July 9 (bold blue parallel lines on chart). The next upside target is located at the upper edge of the channel, which is currently around the 1.3800 level.
Support levels below:
1st support: 1.3710 (February 1 high)
2nd support: 1.3645 (October 3 high) or the daily EMA 20
3rd support: lower edge of the uptrend channel
Resistance levels above:
1st resistance: upper edge of the uptrend channel
2nd resistance: 1.4000 (key psychological level)
3rd resistance: 1.4250 (October 2011 high)
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