EURUSD Analysis: Consolidates after surge

The Euro failed to move above its weekly high of 1.24 on Wednesday, as it reversed from the bottom boundary of the three-week channel down.

Later on, better-than-expected US inflation data strenghened the Dollar, thus allowing for a breakout of the 55– and 200-hour SMAs. This hourly plunge was stopped by the weekly PP and the 100-hour SMA near 1.23. The subsequent surge of the pair was caused risk-averse investors who re-took their positions on Wall Street. The rate advanced even further up to the 1.2450 mark.

Meanwhile, the Asian session was spent calmly due to a Chinese bank holiday. The rate might edge slightly higher today, as no immediate resistance is apparent. However, the general movement should be south, as bears might want to re-gain some lost positions after the strong surge.

EURUSD

Interested in EURUSD technicals? Check out the key levels

    1. R3 1.2717
    2. R2 1.2591
    3. R1 1.2528
  1. PP 1.2402
    1. S1 1.2338
    2. S2 1.2213
    3. S3 1.2149

 

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