Since the
moment the Euro stalled its rally versus the Dollar, we have been expecting a
possible retracement to the 1.3900 level. A visit to this level could give us a
bounce to the upside, due to the fact that this same round number area has been
a good resistance zone in the past and now that the price has broken it to the
upside, it should become support.
Below the
1.3900 level we can see different levels of support on the 4 hour chart below,
like the 55 and the 200 period exponential moving averages. Therefore, if we
see that the price breaks below the 1.3900 level, it will be very difficult to
decide where to go short, because the pair may come right back up from any of
those support levels.
Good review!
ReplyDeleteEUR/USD should have some margin to retrace now that the situation in Ukraine is stabilizing
ReplyDeleteLet’s see what happens to EURUSD after ECB delivers the rate decision today!!!
ReplyDeleteSomeone took steps to diffuse the crisis in Ukraine after shorting a lot of EUR/USD. :-)
ReplyDelete