EUR/USD encounters resistance in moving average

Source: Dukascopy Bank SA


The recovery from the 0.9900/0.9915 zone passed the 50 and 100-hour simple moving averages near 0.9975, the weekly simple pivot point at 0.9984 and the 1.0000 mark. However, the surge of the Euro against the USD ended near the 1.0020 level, where the 200-hour simple moving average appeared to be acting as resistance.

During the morning hours of Tuesday's European trading, the rate was being squeezed in by the support of the 50 and 100-hour SMAs and the weekly simple pivot point at 0.9984 and the resistance of the 200-hour SMA. In general, a squeeze often ends with a sharp move either up or down.

In the case of a surge upwards, the pair would face no resistance as high as the weekly R1 simple pivot point at 1.0068 and the Friday's high level at 1.0090. On the other hand, a decline of the rate is expected to once again look for support in the 0.9900/0.9915 zone, before reaching the weekly S1 simple pivot point at 0.9878.
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