The euro remained solid around 1.3580 after a run through 1.3600 yesterday and had another go at the upside last night where it reached 1.3623. We’ve been as low as 1.3590 this morning and are now holding above 1.3600, and it looks like it may want another crack at the highs. There’s not a lot of tech in the way to the upside so the door is open for further gains.
EUR/USD weekly chart 03 10 2013
The tech is now building below and is likely to provide decent support on any retractions. There’s several areas below that are starting to offer a decent confluence of support. 1.3460-71 is one and further down 1.3336-64 is another. If we do get a decent sell off look to these levels as strong support levels.
The upside has the Jan high at 1.3709 as the near target and as I say, the door is open and it’s up to the market to take advantage. I wouldn’t be surprised to see 1.37 tested over the coming sessions especially if worries increase over the US problems. The market seems to be pretty settled with the situation at the moment, but as the days go on without a resolution sentiment is likely to deteriorate, especially as we near debt deadline day on the 17th.