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EURUSD Medium-Long Term Technical Forecast.

Euro – EUR/USD
Pivot – Support and Resistance Levels based on Daily Chart:
S3: 1.3044 | S2: 1.3074 | S1: 1.3128 | PP: 1.3159 | R1: 1.3213 | R2: 1.3243 | R3: 1.3297

(EURUSD Weekly Chart)
eurusdweekly

Last week the Euro made a high of 1.3225 and a low of 1.3100. The pair during the week was significantly bearish to find enough support around the 1.3100 level which pushed it back up to close forming a hammer with a significant lower tail indicating bullish power. On the weekly chart, two weeks ago in August, we saw that the pair failed to close above the 1.3400 level, which is also a minor resistance level created in June. Now, if we look at the below chart, we see that this level is not quite minor because the gray 200days simple moving (highlighted in yellow) is acting as a major resistance line above Euro’s highs, offering it enough resistance and preventing it from going up any higher.

eurusdweekly---zoomed

On the other hand and as you can see in the above chart, we have a major support line around the 1.2800 level (3 support points highlighted in blue). Obviously the pair has been for a while now consolidating between the 1.2800 and 1.3400 levels. With that being said and for those of you who are looking for medium-long term trades, we think that the zone between the 1.2800 and 1.3400 is a no trading zone. When it comes to buying, we think that if EURUSD managed to break the 1.3400, we could have a long term buy signal with a target towards the 1.3700 level. As far as sellers are concerned, we think that if EURUSD managed to break the 1.2800 level, we could have a long term selling signal with a target towards the 1.2500 level.

About Ziad Melhem

Ziad Melhem
Ziad Melhem is the Admin of Forex.com.lb with more than 10 years of experience in the local and regional "financial wheel". With vast experience in equities, capital markets, foreign exchange, derivatives, technical analysis, and financial services, he is one of the pioneers in online trading when this financial product was first introduced to Lebanon around 2000-2001. Ziad is currently the CMO of Amana Capital Group (www.amanacapital.com).

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