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9 Apr 2013
Forex: EUR/USD absorbs 1.3025/50 supply; bullish case strengthens
FXstreet.com (Barcelona) - The Euro is charging higher along the Asian session, finally clearing sticky area of supply at 1.3025/45, after a weak twin top printed on Monday suggested buyers were still dominant and resilient to abandon the push higher.
At the moment, EUR/USD has entered area above 1.3050, printing its highest since March 15 at 1.3065.
On the latest upside resolution, some intraday pattern identified are the price respecting closes above the 20-day MA on the hourly chart, suggesting some strong commitment by buyers.
If we throw into the mix the fact that supply at 1.3025/45 has been used up and next significant one is not spotted until 1.3140/60 as per the rally-base-drop from Feb 28, it seems as though there still might be some room for the Euro to appreciate.
Area of value to reinstate longs may come around 1.30 psychological level, although by looking at the chart, it is hard to identify where clear stack of large institutional orders are until 1.2900-15/30; on this latter area, judging by the post NFP reaction, looks like a significant imbalance between buying and selling interest remains.
At the moment, EUR/USD has entered area above 1.3050, printing its highest since March 15 at 1.3065.
On the latest upside resolution, some intraday pattern identified are the price respecting closes above the 20-day MA on the hourly chart, suggesting some strong commitment by buyers.
If we throw into the mix the fact that supply at 1.3025/45 has been used up and next significant one is not spotted until 1.3140/60 as per the rally-base-drop from Feb 28, it seems as though there still might be some room for the Euro to appreciate.
Area of value to reinstate longs may come around 1.30 psychological level, although by looking at the chart, it is hard to identify where clear stack of large institutional orders are until 1.2900-15/30; on this latter area, judging by the post NFP reaction, looks like a significant imbalance between buying and selling interest remains.