Resistance 3:$1.3050
Resistance 2: $1.2980
Resistance 1: $1.2880
Current price: $1.2845
Support 1: $1.2740
Support 2: $1.2660
Support 3: $1.2590
Comments:
The euro fell to a 20-month low against the dollar near $1.2745/50 on
speculation the European Central Bank will cut interest rates to
bolster growth as the global economy heads for recession. There was
also talk that dollar demand over the last 24 hours is linked toredemptions in hedge funds.
Daily studies and
hourlies are oversold but the daily studies are not at extreme levels.
Subsequently, the euro still has room for further declines.
$1.2680/60 represents 76.4% retracement of
the euro rally from November 2005 to July 2008 and Oct-Nov 2006
lows. Further supports are Sep 2005 high $1.2590 and July 2006 low at
$1.2460.
The speed of the
decline means resistance levels are limited nearby. $1.2880 is 76.4%
retracement of the $1.3350- $1.2745 move. 61.8% of this move lies at
$1.2980, and 50% near $1.3050. 5-DMA
is currently back up at $1.3225.