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Euro Balks Before 1.3400

Posted by Joseph Trevisani on Aug 8, 2013 11:12:00 AM

The euro rush higher has faltered at 1.3400, the effective high since late February. But with overall dollar weakness flourishing, and the retreat so far under twenty points (1.3390 at writing), a test is only a matter of time.

The euro has not closed above 1.3400 since February 13th though it has traded through on four occasions, the most recent on June 18th and 19th when it reached 1.3416 and 1.3417.  There is good selling interest layered before 1.3400 and also before the June highs which will have to be absorbed before the stops likely ranged north of 1.3420 come into play. So far the high has been 1.3395.

The pattern of this euro move has been a slow almost deliberate ascent with the ranged sell orders gradually being filled rather than a burst higher fueled by stop executions

The next band of sell orders is at 1.3480 the 76.4 percent retracement (1.3483) of the February-1.3711 to April-1.2746 move and the range so far for 2013. Support is at 1.3300.

 

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Charts: Bloomberg

ScreenHunter 1629 Aug. 08 11.42

ScreenHunter 1627 Aug. 08 11.29

ScreenHunter 1628 Aug. 08 11.30

 

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