Euro Retraces Losses, Bounces Back Above 1.3000
- The single currency has battled back against the US dollar in the New York session, rising from a low of 1.2960, currently trading at 1.3056. The move has widely been seen as a profit taking move, with buyers carefully eyeing the 1.3082 figure.
- The 1.3082 stands as the first test of resistance for short term investors long the currency, stemming from the 38.2% fibonacci retracement level of the 1.3228-1.2960 bearish decline. The level additionally represents the close of Friday’s session, and the top of a gap that is likely to be closed in the next 12-24 hours.
- Long term daily support at 1.3025 is also helping to buoy the currency higher, with a hammer candlestick pattern alluding to further upside or consolidation potential in the short term for the Euro.
- Any further declines in the single currency remains contingent on a break of the aforementioned session low of 1.2960.
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