EUR/USD Pulls Back After Sharp Surge

EUR/USD has pulled back to hit a low around the key 1.3000 support, today, after yesterday’s dramatic surge that shot the price up from a low below 1.2800 support to a high near 1.3200. That surge temporarily helped EUR/USD recover back up to around the 62% Fibonacci retracement of the strong bearish leg that had been in place for the prior three weeks. The current pullback after that recovery represents an exhaustion of the sharp upside move.

Support And Resistance
Two key support/resistance levels should dictate which direction the price may follow after the spike. To the downside, a re-break below 1.3000 would indicate that yesterday’s surge was little more than a bullish retracement within a larger bearish trend. In this case, the currency pair has downside support objectives around 1.2800, 1.2650, and then 1.2450. In the opposite event of a breakout above the 1.3200-area high, a new bullish leg will have formed, with a key upside resistance objective around 1.3400.
EUR/USD: Daily" width="1197" height="661">
From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.