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12 Apr 2013
EUR/USD: Edging higher towards 100 DMA (1.3150), key level for further upside?
FXstreet.com (Barcelona) - The EUR/USD finished the session 40 pips higher at 1.3107, again failing to take out overhead resistance the 100 day moving average (1.3150) on the daily chart. This same moving average has capped numerous rally attempts dating back to late February 2013. Economic data out of the Euro zone is limited with the main report being Industrial Production at 9:00GMT. The US session will be much more active with PPI and Retail Sales due out at 12:30GMT, followed by Consumer Confidence at 12:45GMT.
As noted by Gerry Davies at FX Briefs, “We’re at 1.3132 having been as high as 1.3138 so far. Reports have sell orders clustered 1.3140/50 (1.3144/50 contains cloud top, 55 & 100 dma). Varying reports then have buy stops through 1.3150 and 1.3160.”
From a technical perspective, it’s important to note that on the daily chart RSI (14) is sitting just below key resistance at 60 (58.86) and has not been above this level since a serious correction started on February 6th, 2013. A close above the 60 level could propel momentum buying through the critical 100 day moving average resistance level at 1.3150 (also the daily pivot high). A close above here opens the door to 1.3203 (daily upper pivot). Initial support is at 1.3050 (daily pivot low), followed by 1.3011(daily lower pivot)
As noted by Gerry Davies at FX Briefs, “We’re at 1.3132 having been as high as 1.3138 so far. Reports have sell orders clustered 1.3140/50 (1.3144/50 contains cloud top, 55 & 100 dma). Varying reports then have buy stops through 1.3150 and 1.3160.”
From a technical perspective, it’s important to note that on the daily chart RSI (14) is sitting just below key resistance at 60 (58.86) and has not been above this level since a serious correction started on February 6th, 2013. A close above the 60 level could propel momentum buying through the critical 100 day moving average resistance level at 1.3150 (also the daily pivot high). A close above here opens the door to 1.3203 (daily upper pivot). Initial support is at 1.3050 (daily pivot low), followed by 1.3011(daily lower pivot)