Forex: EUR/USD consolidating below 1.3290

on Jul 31, 2013
Listen Wednesday July 31st_: Yesterday the EUR/USD opened at 1.3262 and started to fall towards the 89-hour simple moving average, where support was found and the pair rebounded to expand the recent upwards movement, reaching a 34-day high at 1.3301. Subsequently, the price dropped sharply to establish the day’s lowest point at 1.3233, from which the pair retraced to close two pips above the opening level.

During today’s Asian session the pair traded below a 89-hour simple moving average which acted as a resistance, pushing the price to an intraday low so far at 1.3239. A short time ago, during the European session, the price retested the 89-hour MA at 1.3267 and broke above this trend indicator to be trading right now at 1.3275.
Since late last week the quote has been testing the 1.3250 level, but so far has failed to trade consistently below that mark, with the candles closing above. Exactly 40 pips above, 1.3290 has been providing resistance since last Thursday, trapping the price in sideways trading.
A break above 1.3300 would possibly see the price rallying beyond the 1.3400 mark. In the opposite direction, trading under 1.3160 may produce a fall towards 1.3000 first and eventually 1.2750.

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