Forex: EUR/USD: Euro pulls back from 1.3375 intra-day high

Wednesday, May 6, 2009

The Euro has rallied after the ADP employment report to hit an intra-day high at 1.3375 and the pair has set back slightly to levels around 1.3350; 0.32% above its opening level.

The nearest support level for the Euro lies at 1.3340, previous intra-day high, and below there, 1.3300; once below here, next support could come at 1.3375. On the upside resistance level lies tat the 1.3375/85 area, and above there, .3435 (May 5 high) and 1.3460/65.

On a longer term, Mohammed Isah, technical analyst at FXTechstrategy observes that the Euro remains trading above the broken declining channel; “Although weakness was seen on Tuesday with a follow through lower in early morning trading today, as long as the pair maintains above its broken falling channel, risk remains to the upside. In such a case, the 1.3434 level which is the location of its daily 200 emawill come in as the initial support ahead of its April 06’09 high at 1.3580 with a loss of there opening the door for more upside gains towards its Mar 23’09 high at 1.3738.”

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