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Forex Analysis: EUR/USD Rebounds Off Key Support Confluence

EUR/USD Daily Chart

EUR/USD (daily chart) has made a substantial bullish rebound off strong support in the 1.3000 price area. This 1.3000 region is also near a bullish support trend line extending back to the July 2012 1.2041 low, which has defined the uptrend for nearly half a year. Additionally, the 100-day moving average resides right around this strong confluence of support, as does the 50% Fibonacci retracement of the last major bullish run. With the bounce off 1.3000 support, price is not far under the strong resistance at 1.3300 that the pair has attempted but been unable to breach for the past three weeks. In the event of a breakout above 1.3300, which would confirm a continuation of the entrenched bullish trend, price could move towards further potential resistance to the upside around the key 1.3500 price region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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James Chen

James Chen

James Chen is Chief Technical Strategist for City Index Group. He is also a Chartered Market Technician. He is the author of the books: "Essentials of Foreign Exchange Trading" (John Wiley & Sons, 2009) and "Essentials of Technical Analysis for Financial Markets" (John Wiley & Sons, 2010). Mr. Chen writes currency analysis, leads forex trading seminars and has appeared in numerous major financial media outlets, including CNBC, Bloomberg TV, Forbes, Reuters, Dow Jones, and the Associated Press.