Euro Technical Outlook – May 10th
- EURUSD has found support just above the 1.2900 round figure support level in the hourly time frame, leading to a bounce of about 68 pips through the New York morning – trading at 1.2969. Should the price action close at this level it would confirm a break above resistance at 1.2961 or the 61.8% fibonacci retracement from 1.2627-1.3470 – indicative of a move higher in the exchange rate in the short term.
- Unfortunately, this could be shortlived as resistance is surfacing just below the 1.3100 psychological figure. Specifically, short sellers will likely be focusing in on the 1.3062, which is being reinforced by a confluence of resistance stemming from the 50% fibonacci retracement of the 1.2627-1.3470 bull wave and the 1.3283-1.3177 descending trendline.
- We look to the 1.3000 as being the next level of resistance before the 1.3062 is even tested.
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