EUR/USD Soared Past 1.30 Level

EUR/USD surges above 1.31 level today.
Dollar remains weak across the board. Even though today’s sharp drop in the dollar
was not stimulated by any economic news, the technical implication is
significant as dollar finally broke through 6 months range against Euro and
1.30 psychological support. On the other hand, USD/CHF was also in free fall
moving past the 1.2182 support level. These are confirming the resumption of medium term weakness and we
see the greenback declining further for the rest of the year.


Daily Pivots: (S1) 1.2926; (P) 1.2950; (R1) 1.2971;


EUR/USD surged to above 1.3100 level today before turning sideway. Break of 1.2978 key resistance confirms that medium term up trend from 1.1639 has resumed for next upside target of 78.6% retracement of 1.3668 (04 high) to 1.1639 (05 low) at 1.3234. At this point, intraday bias remains on the upside as long as EUR/USD stays above 1.3054 minor support. Below 1.3054 will suggest an intraday top is formed and consolidations should follow before another rise.

In the bigger picture, break of 1.3234 resistance will encourage further rally towards 1.3668 high. Meanwhile, below 1.2926 support will suggest a short term top is formed and bring lengthier consolidation. Break of 1.2760 is needed to indicate rise from 1.2483 has completed. Otherwise, further rally is still in favor to come even in case of a correction.

EUR/USD 4 Hours Chart - Forex Education, Forex Course, Forex Tutorial, Forex eBooks, Forex Training

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Shing-Ip Tsui is the founder and CEO of ActionForex is set up with the aim to empower individual forex traders by providing insightful contents. Analysis reports, live pivot points on majors and crosses, etc are provided with collection of carefully selected educational articles and free trading ebook downloads.