The EUR/USD for Week of March 11, 2012


EUR/USD Current Price: 1.3100
Daily High/Lows:

Fri Mar 9 1.3276/1.3096
Thu Mar 8 1.3290/1.3134
Wed Mar 7 1.3163/1.3095
Tue Mar 6 1.3225/1.3102

Pivots: S3: 1.2915; S2: 1.2982; S1: 1.3049; P: 1.3163; R1: 1.3230; R2: 1.3343; R3: 1.3457

EUR/USD: The European currencies closed the week flirting with the lower end of the trading range of the week. The GBP/USD, USD/CHF and the EUR/USD look set to continue with the trend for a higher dollar this week, with no noticeable moves of note in the crosses. Despite positive fundamentals last week for the EUR/USD with the strong participation on the Greek Bond Swap and ECB less dovish monetary stance at the press conference, the US Dollar reigned supreme amidst solid US data. In particular, USD/JPY closed the week higher in a bullish formation. The EUR/USD WXY 3-wave correction from the previous low at 1.2627 has likely completed at 1.3484. With solid resistance at that level, the EUR/USD spent four days retesting it and it failed each time, which is a sure sign of selling at the price. With that failure, and subsequent drop and pullback, it appears the EUR/USD is ready to resume its downtrend. Initial pivot support S1 at 1.3049 is followed by S2 at 1.2982 which is also the price low on Feb 16, 2012. On the USD/JPY, near term resistance lies at R1 82.85 and R2 83.33 with support at S1 81.67 and S2 80.97. 85.00 is a reasonable target for this pair. Watch support and resistance levels, including Fibonacci and Pivot Points for the coming week.

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