By: Colin Jessup
The Euro gained some ground against the Greenback again today after finding support a few days ago at 1.3150. This is so far being confirmed by the monthly candle, although we are only a few days into the month, and far from the candle's close. Looking at the monthly chart however we can see that price is trading at the 50% retracement level from the bullish run that began in May 2010 and ended when price started falling in May of this year. The monthly candle is currently a hammer formation, with the tail poking through a monthly support zone at 1.3250 but not holding below that level. Price also came within reach of the 61.8% zone, of the same move up but hasn't reached it fully. Depending on whether or not the Greenback gets some support from the Unemployment & Non Farm Payroll numbers later in the USA, we could see price turn bullish from this level. Price needs to hold above 1.3250 on the low side, and 1.3400 in order to remain bullish. If we break below these levels we could see a bearish continuation to 1.3050 or lower. However, if the bulls are successful we will see resistance at 1.3550 & 1.3600 with the 38.2% level above that at 1.3769.
Happy Trading!
