MT4 - After a roller coaster of a session, EURUSD sell-off finally came to a halt at 1.2160. Since then there has been some marginal bargain hunting lifting the pair off the lows, but on thin volume. Momentum indicators have now turned decidedly bearish suggesting the recent consolidation phase is over. If the bears can sustain this downward momentum we could be on course for a return to sub-1.2000 levels before the end of the week (and triggering extension weakness to 1.1870). As for today directional movement depends on the outcome of the NFP release.
The first levels of resistance lie at 1.2395 (27th July reaction high), 1.2685 (June 19th high & June 20th low), 1.2754 (June 20th high), 1.2826 (22nd May high), 1.2906 (support turned resistance), 1.3066 (8th May high), 1.3081 (gap high), 1.3122 (2nd May low), then 1.3179 (7th May pivot high).
Should the ECB disappoint, the pair will evolve downward, with the first levels of supply located at 1.2160 (13th July low), 1.2046 (25th July low), 1.2000 (psychological support) then 1.18670 (7th June low), and 1.1772 (30th Dec 05’ low).
MT4 platform and analysis courtesy of Swissquote bank.
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