Wednesday, August 18, 2010
Forex: EUR/USD bounces at 1.2820, and returns to 1.2900 resistance area
Euro recovery from 1.32735 low on Monday was rejected yesterday at 1.2900/15 resistance area. and the pair pulled back on Asian session to reach 1.2820 low, where the pair found support to bounce up and return to 1.2900 area, under pressure at the moment.
The pair is moving parallel to risk trends, according to Peter Rosenstreich, technical analyst at ACM - Advanced Currency Markets, unable to gather momentum: "We seem to be stuck in a risk-on/risk-off environment this week, so the move through the top of this week’s short-term downtrend has not had a chance to gather momentum for a sustained moved higher, instead slumping back towards 1.2830 levels."
On the upside, the pair is likely to be capped below 1.2930, says Rosenstreich: "Should the bulls step in back at the short-term downtrend and drive the pair back higher, the first key resistance remains 1.2930 (12 Aug high). That ceiling will probably be robust enough to withstand most rallies (having scuppered 3 attempts already)."