May 1, 2013 – EUR/USD (daily chart) continues to reach higher on a bullish correction, as it has for the past three trading days, from the 1.3000 support area. From a broader perspective, this bullishness, which reached a high of 1.3242 in early Wednesday trading, is part of a larger bullish correction that began about a month ago from the 1.2750 support area. Having just reached up to the 50% Fibonacci retracement of the precipitous drop from the 1.3700-area high in early February to the 1.2750-area low in late March, price currently appears poised to further its upside correction. With continued bullish momentum, upside resistance objectives on an extension of the current correction reside first around 1.3300 and then 1.3500. To the downside, the key 1.3000 level continues to provide strong support for the pair.
James Chen, CMT
Chief Technical Strategist
City Index Group
Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.
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