EURUSD – Daily Technical Outlook 2012.05.14

On Monday EUR continued its losing streak against USD as Greece continues to struggle in forming a government and European officials have now begun to weigh the prospect of Greece exit from the Euro-zone. As is visible on daily charts, EUR broke below the lower trend-line of descending triangular formation on 7th of this month followed by a break below Neckline of Head and Shoulders pattern formation on 9th. Although the breakdowns were not accompanied by expansion in volumes, we are still witnessing continuous weakness on EUR. Technical indicators like RSI (around 30) and Stochastic Oscillator (below 20) shows oversold reading and warrant slight caution on further downside. However EUR may continue to remain oversold since it seems to be in a strong down-trend. EUR is likely to weaken further and may find support near 1.2845 levels and on upside it may continue facing resistance around 1.2940-1.2960 levels.      EURUSD - Important Technical Levels for today (CMP – 1.2894) Support 1 – 1.2843              Resistance 1 – 1.2935 Support 2 – 1.2818              Resistance 2 – 1.2968 Support 3 – 1.2785              Resistance 3 – 1.3020     Haresh Menghani Market Analyst Admiral Markets   At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory.