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20 May 2013
EUR/USD buyers likely to show up at 1.2744 yearly lows - 2ndSkies
FXstreet.com (Barcelona) - The EUR/USD bearish outlook strengthened last Friday, after sellers managed to penetrate and close below 1.2840/50 support. Presently in the Asian session, a half-hearted attempt to retest the broken-support-turned-resistance saw offers return, taking the rate to levels around 1.2820/25. The Euro seems to be heading towards 2013 lows at 1.2744.
In view of Chris Capre, founder at 2ndSkies, despite the pair retains a downside bias, "the daily chart shows that every one of the 7 days of selling (save for the 4th) had significant wicks on the bottom, suggesting that although the pressure is down, the pair is having to fight through buyers along the way", Chris said.
Chris suspects that buyers will re-emerge at the yearly lows, "so bulls can look for price action signals at the yearly lows, while bears can look for pullbacks to rejoin the trend, particularly watching the 20ema on the 4hr chart for sell signals" he added.
In view of Chris Capre, founder at 2ndSkies, despite the pair retains a downside bias, "the daily chart shows that every one of the 7 days of selling (save for the 4th) had significant wicks on the bottom, suggesting that although the pressure is down, the pair is having to fight through buyers along the way", Chris said.
Chris suspects that buyers will re-emerge at the yearly lows, "so bulls can look for price action signals at the yearly lows, while bears can look for pullbacks to rejoin the trend, particularly watching the 20ema on the 4hr chart for sell signals" he added.