Technical Analysis – Euro trends up in 4-hourly chart; attempts to turn tables on US dollar
November 19, 2013 9:41 am
(click to enlarge)
Following the 1.3295 low on November 7th, the euro has been rallying and trying to reverse the sell-off that drove it all the way down from 1.3830 (October 25th).
Currently the euro has been in an uptrend, making higher highs and higher lows since the November 7th low.
This uptrend would be confirmed if the key 1.3547 level (Resistance 1) is convincingly taken out.
This is the high from November 6th, before the euro took the one-two punch from the US dollar in the form of a surprise rate cut by the ECB on November 7th and stronger-than-expected nonfarm payroll numbers from the United States on November 8th.
Taking out 1.3547 could potentially open the way for a retest of the 2-year high of 1.3830 (Resistance 2).
On the downside, some initial support can be found at the recent low of 1.3431 (support 1) and also at the 2-month low of 1.3295 (support 2).
The MACD indicator is bullish, as the the MACD is above its red signal line, it is in positive territory and is not yet overbought.
Price action is also above the 21-period exponential moving average (dotted line), which confirms the short-term bullish characteristics.
(click to enlarge)
Following the 1.3295 low on November 7th, the euro has been rallying and trying to reverse the sell-off that drove it all the way down from 1.3830 (October 25th).
Currently the euro has been in an uptrend, making higher highs and higher lows since the November 7th low.
This uptrend would be confirmed if the key 1.3547 level (Resistance 1) is convincingly taken out.
This is the high from November 6th, before the euro took the one-two punch from the US dollar in the form of a surprise rate cut by the ECB on November 7th and stronger-than-expected nonfarm payroll numbers from the United States on November 8th.
Taking out 1.3547 could potentially open the way for a retest of the 2-year high of 1.3830 (Resistance 2).
On the downside, some initial support can be found at the recent low of 1.3431 (support 1) and also at the 2-month low of 1.3295 (support 2).
The MACD indicator is bullish, as the the MACD is above its red signal line, it is in positive territory and is not yet overbought.
Price action is also above the 21-period exponential moving average (dotted line), which confirms the short-term bullish characteristics.
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