Tuesday, November 30, 2010

EUR/USD Target Hit - Next Levels to Watch

Andrei Knight, Chief Strategist, fxKnight.com

Ireland's formal request for an EU bailout continues to weigh heavily on the Euro, as Spain's bond market begins to show signs of trouble as well.  Portugal, Belgium, and Italy also remain potential trouble spots, and Greece is not out of the fire yet as well.  This, coupled with initially fairly promising holiday retail numbers out of the US (up 6% from last year, as high as 25% for some online retailers), should make for some interesting trading on the EUR/USD in the final weeks of the year.

With our target from last week hit at 1.3128, we are now looking to see whether that level can hold as the new resistance or not.  If so, the next downside target is at 1.2931, with an additional one potentially waiting at 1.2612 if we break below the first; if, on the other hand, we get back above 1.3128 and find some support there, then I will be looking for an eventual return to 1.3446, with resistance on the way at 1.3221 and 1.3296.











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