EUR/USD Technical Outlook – May 15th

  • Euro shorting remains en vogue as the spot rate plummeted through support at 1.2813 or the January 10th session high.  Although fundamental drivers remain the main catalyst to further euro downside, the technical break is significant, and indicative of further declines in the exchange rate.
  • The next formidable level of support remains circa the 1.2686 figure, which coincides with the 1.2667 January 11th low.  A break of this support level would open scope for the spot rate to move towards the 1.2627 January 16th session low in the near term.
  • Any retracement, albeit unlikely, will find reinforced resistance above at 1.2955 or the 61.8% fib level from the 1.2627-1.3478 bull wave.  The figure is being supported by the descending trendline resistance from 1.3282-1.3177.

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