EUR/USD: key levels
Yesterday’s EUR/USD attempt to rally was capped by the $1.3180 mark. On Thursday the major currency pair is testing the levels below the $1.3100 support. US dollar strengthened on Bernanke’s testimony, positive US corporate reports and Beige book.
The picture remains quite uncertain. The wedge-like pattern formed last week shows we have some room for growth. Break above $1.3200 could confirm the resumption of an uptrend from $1.2750. However, the $1.3300 area (2013 resistance) is very likely to cap the uptrend – intrinsically, the pair doesn’t have reasons for such strength.
Support is seen at $1.3080 (200-day MA) and $1.3050 (bottom of the daily Ihimoku). Decisive break below the $1.2990/3000 support area could provoke a wave of sales.
Chart. H4 EUR/USD