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Forex Analysis: EUR/USD Stalls around Key 1.3000 Level


April 24, 2013 – EUR/USD (daily chart) has stalled and consolidated around the key 1.3000 support level after dropping from an intermediate high of 1.3200 established last week. The current bearish bias can be considered a move towards a potential resumption of the bearish trend that has been in place since the beginning of February. Further downside momentum below 1.3000 would strengthen this indication, with an initial bearish objective around the 1.2750 support area. This target was double-tested in late March and early April, before the latest bullish correction to 1.3200 commenced. In the event of a further price move below 1.2750, which would confirm a downtrend continuation, the key objective immediately to the downside resides around the major 1.2650 level. Strong upside resistance is now established around the noted 1.3200 pullback level.

James Chen, CMT
Chief Technical Strategist
City Index Group


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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.