FXstreet.com (San Francisco) - EUR/USD is little changed at the weekly open, but may encounter buying interest in the Asian session ahead after the weekend’s surprisingly positive China trade data. However, the reaction is somewhat muted in early Asia. News headlines are likely to focus on the EU summit later in the week and the US fiscal cliff, but there is little new.
For the past few weeks, EUR/USD has traded a wide range around the 1.2900 figure, and slipped into an even tighter range on Friday, notes Sean Lee, founder of FXWW; “Look for continued range trading inside a 1.2825/1.3080 range” Mr. Lee comments in a research note. “EUR shorts have been on the increase again but if bearish momentum doesn’t pick up soon, the prospect of a short-covering rally becomes real again.”
The 200-day EMA (1.2863) continues to offer EUR/USD support, while a 38.2% Fibonacci retracement level at 1.3145 is the level to overcome for upside extensions. Ahead of there, offers may be located at 1.3070 (Oct 5 high), and the mentioned 1.2900 figure is now immediate support, while, below the 200MA lies support at 1.2825 (May 21 high).
EUR/USD last trades at 1.2950.
For the past few weeks, EUR/USD has traded a wide range around the 1.2900 figure, and slipped into an even tighter range on Friday, notes Sean Lee, founder of FXWW; “Look for continued range trading inside a 1.2825/1.3080 range” Mr. Lee comments in a research note. “EUR shorts have been on the increase again but if bearish momentum doesn’t pick up soon, the prospect of a short-covering rally becomes real again.”
The 200-day EMA (1.2863) continues to offer EUR/USD support, while a 38.2% Fibonacci retracement level at 1.3145 is the level to overcome for upside extensions. Ahead of there, offers may be located at 1.3070 (Oct 5 high), and the mentioned 1.2900 figure is now immediate support, while, below the 200MA lies support at 1.2825 (May 21 high).
EUR/USD last trades at 1.2950.
