By: Colin Jessup
As I am sure most of you are already aware, the EUR/USD pair dropped like a stone through our weekly support level today. Since the close of the US session however we have not moved much with 4 hours into the Tokyo session. It is highly possible that we will see prices pull back somewhat, possibly back up to our weekly S/R zone of 1.3658, before falling further. For now it has found some support at the 1.3540 level, which was also an area of support and resistance back in January of this year. Look for interim support at 1.3424, 1.3361 and then at our next weekly S/R Zone of 1.3236 or thereabouts. If the Bulls are successful we will see resistance at 1.3658 as mentioned, and then 1.3796 above. Also of interest is that today's daily chart shows the Euro/usd candle opening right below the Moving Average which I mentioned was a significant factor yesterday, at 1.3857.
Happy trading!
