Last week I was expecting that EURO may move upside in the beginning of the week and it is good to see that it tested level below its initial resistance of 1.29.
I was expecting that EURO may get little support around 1.26 but it took no time to break that. But it is good to see that EURO got support exactly at 1.25. Last week I was talking that many short positions will come if EURO tests higher levels, though I don’t have the data but I think that option was less, considering the level it moved in the upside.
On medium term basis 1.26–1.27 was a very good support level for EURO and now it is below that level. Its bearish pattern was indicating that it might go around 1.25 but some technical indicators are saying that still it can drop little more in the down side. But as it looks like that EURO is making a base near 1.25 level so it may bounce back for sometime.
So in the early to middle days of the coming week EURO may test higher levels may be around 1.27, where it will get initial resistance. I am not sure that it will drop in middle to later days of the coming week. But I think emphasis should be given in 1.28–1.29 levels. In the upside 1.32 will act as a solid resistance.
Here I must say that if EURO drops from 1.27 or it just moves flat then there is a chance that it may cross 1.25 level in the downside. Therefore EURO will go one step more to prove its long-term pattern which says that EURO will be around 1.15 in coming future.
[EURO is given against US dollar and it is
market price.] US
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