Last week I was expecting that EURO may test 1.28 level in later days of this week. EURO is falling during last 10-12 days so a reversal was due. It is very good to see that finally EURO has reacted on it short-term bearish pattern which I mentioned during last couple of months.
Now according to that pattern it can go up to 1.25 but before that I will not be surprise if it tests higher levels. Last day’s closing was good and it says that EURO may move flat or upside in the beginning of the coming week. But it doesn’t look like that EURO is going to test 1.32 range in coming week. Therefore in the upside it will get initial resistance at 1.29 and stronger one will be at around 1.30 level. There is more chance that EURO will be moving around smaller range in early to middle of the coming week.
1.26 has acted as a stronger support for EURO in past and now also it is getting support around that level. So if EURO does not able to break this level then it will not drop to test lower levels. Therefore the long-term view of EURO at around 1.15 may not be true for now.
If someone ask me that what is going to happen in coming week, I will say that lot of short positions may come if EURO tests higher levels in coming days. Therefore more drops will come in future and we may test some hints of that in later days of the coming week.
[EURO is given against US dollar, unless specifically told.]
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