Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

EUR/USD Is Moving Back Towards The 1.3578 High

ByIan Copsey
Published 11/24/2013, 11:26 PM
Updated 07/09/2023, 06:31 AM

Overall Friday was a positive one for my views. The EUR/USD is moving back towards the 1.3578 high, and has broken below the prior 0.9078 low in USD/CHF. As mentioned on Friday the GBP/USD made further gains, but less aggressively than the other two Europeans. In particular the dollar has penetrated the 4-hour Price Equilibrium Clouds with strong momentum that tends to suggest we’re on the right track. However, structurally I don’t think this is going to follow-through too strongly today. Yes, I do feel the dollar should weaken a bit more in early trading but not too far.

The Aussie seems to be very much in the same boat although I feel it’s more likely to see a correction first without moving to minor new lows. There is an hourly bullish divergence there but no 4-hour so the underlying direction does remain lower. Thus, treat this as being non-correlated with the Europeans overall.

The USD/JPY has progressed pretty much as expected. It always seems to enjoy making heavy work in its structural development, but there do seem to be signs from the hourly chart that we’re due a correction here also before long. A combination of corrections in both the USD/JPY and EUR/USD should therefore imply a modest correction in the EUR/JPY obviously dependent on whether both move in tandem or at different times. There is an hourly bearish divergence in the cross and the potential for a 4-hour divergence also, so note the key support levels that would risk a deeper move lower in the cross.

Therefore it does look like a rather 2-way day today, and as such the key support and resistance levels should be observed and as usual, look out for price reversal patterns and momentum indications at key targets.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.