An intermediate support at 1.2730, a 2005 low, currently defends the major support at 1.2657,a Nov 11 Daily spike low. Euro longs are entering into a critical stage, as a break below the 1.2730-1.2657, will most likely see the pair retest the bids at 1.2481, a 61.8 Fib of the 1.1760-1.3667 euro rally, with a further breakdown targeting the 1.2000, a summer range low. In case the euro bulls manage to stage a counteroffensive against the greenback, they will encounter a minor resistance at 1.2992, a 78.6 Fib of the 1.2730-1.3481euro rally. A move deeper into the dollar held territory will come upon an intermediate resistance at 1.2944, a 20-day SMA, with a further advance meeting major resistance at 1.3018, a 61.8 Fib of the Feb-Mar euro bull swing. Oscillators are mixed, with Stochastic neutral on the daily chart at 56.68 and neutral at 9.11on the dealer (4HR) chart. RSI remains neutral on both the daily chart at 38.74 and at 35.71 on the 4-hour chart. MACD made a bearish crossover below the zero line on both the daily dealer (4HR) charts.
Euro Continues To Lose Ground To Dollar
Mon May 02 06:17:00 GMT 2005