EUR/USD: Supports And Resistances Same As Yesterday
Admirals | Mar 13, 2013 12:46AM ET
Monday was one of those days that traders on the lookout for high volatility would rather forget. Technically, we can say that Monday was neutral. Although the price did rise which is a plus for buyers, this movement was closed in a flag formation (black lines) that usually ends with a trend continuation. The trend as we all know is bearish, so it is more likely that we will see a breakout of the flag’s lower line rather than an upswing.
Supports and resistances stay the same as yesetrday: The most important support for buyers is 1.2970 and a local resistance is 1.3040. We can see that this level was tested yesterday, and it proved its important role as a place to open short positions.
As long as the price stays in a flag formation, we should expect a slight rise in the value of the European currency. At the same time, traders should anticipate that the price will try to escape from this formation today and according to the technical analysis, it is more likely that the side taking the control will be sellers.
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