| Written by Sam Shenker Currency Analyst | |
| Monday, 09 May 2005 GMT | |
| EUR/USD - Euro bulls retreated after the dollar longs staged a massive assault on the single currency positions and pushed the pair below the 1.2800 figure in the latest bout of the greenback bullishness. As euro continues to lose ground to the dollar, single currency longs will try to mount a defense at 1.2730, a minor support created by the 2005 low. An intermediate support at 1.2657, a Nov 3 daily spike low, currently defends the major support at 1.2632, an Oct 28 daily spike low. In the unlikely event of the countermove by euro bulls, single currency longs will encounter a minor resistance at 1.2892, a 78.6 Fib of the Feb-Mar euro rally. An intermediate resistance can be seen at 1.2942, a 20-day SMA, with major resistance at 1.3019, a 61.8 Fib of the Feb-Mar euro bull swing continuing to defend dollar held territory against the advance by the single currency longs. Oscillators remain mixed, with Stochastic treading above the oversold line on the daily chart at 30.92 and extremely oversold at 5.78 on the dealer (4HR) chart. RSI is neutral on the daily chart at 37.38 and is approaching oversold line at 33.28 on the 4-hour chart. MACD remains below zero line on the daily chart and is getting ready for a bearish crossover above the zero line on the dealer (4HR) charts. |
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