By: Colin Jessup
A quick search on the internet will net anyone about a hundred different analysis on the EUR/USD pair, but it is a hot pair and one of the easiest to trade so I will offer my observations as well. Last Friday the Euro, in a strong bullish move closed above the DMA (1.3168) and in the same move ran smack into a key resistance zone at 1.3233 where it came to a stop, closing just shy of resistance at 1.3217. This zone at 1.3230 is a tough nut to crack and has provided support and resistance for at least 8 weeks since 2008. This zone is also the 38.2% FIBO Retracement level based on the bearish run from 1.4247 achieved in October 2011 to 1.2624 which was reached on January 13 of this year. It is quite possible that the pair will continue its bullish tendencies if it can push through resistance at 1.3233 but will have allot of traffic to fight on its way to the next zone at 1.3475. If prices turn bearish from here, and they are at time of writing, support will be seen at 1.3170, 1.3035 and 1.2900 below. I remain Bullish on this pair having gone long myself at 1.3050, but breaking above 1.3230 is the key level to watch.
Happy Trading
