| | | | Due to the uncertainty surrounding Greek Sovereign debt crisis, the EUR/USD reversed its course and traded sideways since June 9, which we determined by Bollinger Bands. If the pair continued to trade lower amid the economic turned political struggle, it should find its first support at the psychologically significant 1.4000. Once broken away from that level, the next major support would be at 1.3816, where the 200-day moving average lies. On the other hand, should the euro garnered enough upward momentum boosted by the resolution between German and French leaders, the pair would find the first level of resistance at 1.4451, the 23.6% Fibonacci retracement. We drew our Fibonacci retracement from the pair’s low on Jan 9 to the high on May 3 – a move more than 2000pips. Once broke away from 1.4451, the second major resistance level lies at 1.4743 - the second deviation Bollinger Band.
| | | | |
|