EUR touches lowest level against USD after Ju 2012.05.24
We had mentioned in our report yesterday that EUR was unlikely to hold January lows (1.2620 – 1.2630 support zone) against USD and the pair is likely to depreciate further.
Also it was mentioned in our report on 10th May that a Head and Shoulders patter, a bearish sign, was visible on daily charts and the projected downside target on the currency pair was 1.2600.
On Wednesday, EUR touched a low of 1.2545 against USD, lowest level after July 2010, as investors continue dumping riskier assets in anticipation of a financial turmoil in case of Greek exit from the Euro-zone.
On Thursday, EUR continued with its down-trend against USD, after its two day corrective pull-back witnessed on Friday and Monday and is currently quoting at 1.2579.
As was already mentioned in one of our past reports, a descending triangular formation is visible on weekly charts and on Wednesday EUR slipped below the lower trend-line support of 1.2600. However, we will have to wait for a weekly closing below 1.2600, for confirmation of closing below the lower trend-line support.
On the downside, the pair is likely to find support near 1.2520 – 1.2480 zone and on the upside the pair will now face resistance near 1.2600 – 1.2620 zone.
Should the pair decisively move above 1.2600 – 1.2620 resistance zone, we may again witness a corrective pull-back on the currency pair till 1.2700 levels.
Should the pair break below 1.2520 – 1.2480 support zone, we may continue to witness sharp depreciation on the currency pair till 1.2370 – 1.2380 levels.
