Dukascopy Bank Team
Dukascopy Bank SA
EUR/USD
On Friday, analysts connected the January high levels of the EUR/USD currency exchange rate to reveal a resistance line. Meanwhile, the December 29 and January 4 low levels form a support zone. The two technical drawings combined form a descending triangle pattern. In theory, the pattern should squeeze the rate in, as the resistance line would force the rate into the support zone. Eventually, a break out up or down should occur.
In the case of the pair breaking the resistance line, the EUR/USD might aim at the weekly simple pivot point at 1.1345. Although, take into account that the 1.1330 mark might slow down a surge.
On the other hand, a decline of the pair would first reach the support zone at 1.1272/1.1277. Below the support zone, December 21 and 22 low levels could stop a decline at 1.1260/1.1265.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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