Swissquote Daily Technical Report: EUR/USD – Challenging the 1.2500 threshold

In Swissquote’s Monday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for EUR/USD and AUD/USD. To view and download the entire report, click here (PDF).

EUR/USD: Challenging the 1.2500 threshold

• EUR/USD continues to move lower, confirming persistent selling pressures. However, in the short-term, the psychological threshold at 1.2500 has held thus far. Hourly resistances for a shortterm bounce can be found at 1.2584 (01/10/2014 low) and 1.2699 (02/10/2014 high).

• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. The break of the strong support area between 1.2755 (09/07/2013 low) and 1.2662 (13/11/2012 low) opens the way for a decline towards the strong support at 1.2043 (24/07/2012 low). Intermediate supports are given by 1.2500 (psychological support) and 1.2466 (28/08/2012 low).


AUD/USD: Challenging the strong support at 0.8660

• AUD/USD declined sharply last Friday. However, short-term buying interest is visible near the strong support at 0.8660. An hourly resistance lies at 0.8765 (previous support), while a break of the resistance at 0.8826 is needed to invalidate the current short-term bearish technical structure.

• In the long-term, the underlying trend is negative. The impulsive decline from the lower high at 0.9505 (01/07/2014 high) does not suggest that the end of this downtrend is near. Monitor the test of the strong support at 0.8660 (24/01/2014 low). A key resistance stands at 0.9112 (16/09/2014 high). Another strong support lies at 0.8067 (25/05/2010 low).


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