EURUSD – Daily Technical Outlook 2012.05.17

On Wednesday USD lost some of its gains against EUR after minutes from the last FOMC meeting showed that some of the committee members thought that further easing may be required should the economy lose momentum. EUR finally settled with marginal loss against USD. On Thursday, USD is trading slightly weak against EUR and the pair is currently trading at 1.2745. A descending channel formation is visible on hourly charts, a bearish chart pattern, signaling a continuous down-trend and we are most likely to test January lows of 1.2625 – 1.2630. The pair is likely to face resistance around 1.2810 – 1.2815 levels coinciding with the upper trend-line of the descending channel. If the pair manages to move above 1.2810 – 1.2815 levels the descending channel chart pattern gets negated and we may possibly test 1.2940 – 1.2960 on the upside. On the downside, the pair is likely to hold support near 1.2720 and the next immediate support around 1.2680 levels before testing January lows.     EURUSD – Key Technical Levels (CMP – 1.2745) Support 1 – 1.2701              Resistance 1 – 1.2782 Support 2 – 1.2662              Resistance 2 – 1.2814 Support 3 – 1.2630              Resistance 3 – 1.2870     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.