Wednesday, December 22, 2010

EUR/USD sitting on crucial Long Term Support

EUR/USD is bouncing off the crucial Support area around 1.3076 (50% Fib) and the 200-Day MA at 1.3095.

It has bounced off the test of 1.30 support and now is trading off a long term trendline in confluence with the 200-DMA. For that to play out we need to see at least 2 closes above the short term 21-DMA which is tracking the current downtrend.

The medium term momentum framed by the downward trend channel however is pointing to 1.28 (61.8%) and 1.244 (76.4%) if the 200-DMA gives way decisively.

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