Forex: EUR/USD: Trendline nailed

on Aug 16, 2013
Listen August Friday 16th_: Choppy price action yesterday saw the EUR/USD moving within a 158-pip range, from 1.3204 to 1.3362. By the end of the day the pair had gained 0.87 percent, with the daily candle opening at 1.3263 and closing at 1.3349. Initially the price fell to a 10-day low, but sharply reversed the direction and rocketed to a four-day high. The candle closed above the trendline, coming through the tops of 2 February, 19 June and 31 July. With yesterday’s rise the pair came back to the week’s opening price.

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Since 13 August the quote has been finding support at the 23.6 percent Fibonacci level of 1.2754 to 1.3399 at 1.3247.
So far today the EUR/USD has been trading between 1.3324 and 1.3355. At the moment the pair is changing hands at 1.3344.
The SMA89 and SMA200 are floating below the price action on the daily, 4H and 1H charts, supporting the upwards movement. The MACD (9,12,1) is positive on the same scales, adding to the bullish pressure. However the MACD divergence on the daily timeframe is still in the game and may push the price lower once again.
In the event of a further rise the pair would first be targeting the 8 August high of 1.3399, which is right below 1.3400 psychological. Close by is the 19 June high of 1.3415.
Resistance levels today: 1.3365, 1.3390 and 1.3410.
Support levels: 1.3305, 1.3260 and 1.3210.


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