The Euro is strong against most currencies
|SUPPORT: 10523/20 10462 10425 10335 10235 10180* 10010*
RESISTANCE: 10575 10623/25 10660 10720 10780/90 10855/50
Currently we have retraced 38.2 of the short term move down on Friday @ 10558 We do need a break above 10575 to see further buying pressure....we are below the daily pivot of 10560....and this is not making the buyers come back into the market just yet....So our pivot points today are PP 10560 S1 10497 S2 10461 S3 10398....R1 10596 R2 10659 R3 10695.....Use these mechanical levels in with chart points and fib levels today...Usually Mondays are quite quiet....with traders/dealers setting themselves up for the rest of the week.....usually liquidating all positions by Thursday ( if they are smart).....so even though we could be quiet today we can enter into trades looking for the direction the rest of the week is going to play....There currently is nothing standing out to say $ strength is over...and I think that the $ weakness we saw over the past couple of weeks may well be complete....that said...we still have to look at out chart points for confirmation....The Euro is strong against most currencies as we go into the week with the biggest gains against the Cable...so that might be the one to watch on its own for direction....I think above the 0.8550 area then the Euro/Gbp cross looks quite strong.....so where does that leave the Eur/Usd...well unless we break 10430....I think that there is still a chance that we can reach the 10750 resistance...we blipped 106 on Friday but couldn't maintain strength....So lets see if we can climb back above the 10560 area....We may not see this till this afternoon...but please be aware of this resistance .....it really is quite significant.....So our indicators are just above the neutral line...and still pointing higher on the daily charts....I think therefore to buy into 10480/60 area is quite a good R/R trade and we can leave stops tight below 10430....This should be enough I think....and we want to keep things tight as we go into the first real week back from the Christmas /New Year holidays....So cautiously buying the currency down around this support...and also watching the daily PP and see if the US can take us higher....The currency markets as yet have not shown any major base patterns....therefore we have to still believe in the Primary and Secondary trends and these are still firmly on the side of the $ and this currency move higher is just seen as a correction to these 2 trends.
Interested in EURUSD technicals? Check out the key levels
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