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17 Apr 2013
Forex: EUR/USD forcing sellers out; 1.3110/40 new buyers stronghold
FXstreet.com (Barcelona) - The Euro/US Dollar upside resolution through Tuesday has opened up scope for further appreciation of the spot exchange rate. Selling orders were finally absorbed at the 1.3040/60 supply area on Tuesday, causing the price to go semi-ballistic until 1.32 round number, where profit taking was observed after the stop loss orders shake-up appeased.
"The new imbalance between buyers and sellers is now found between 1.3110 and 1.3140, where judging by the violent upmove, demand greatly exceeds demand" our in-house supply/demand daily analysis observes.
"Depending on the risk profile, if one wishes to narrow down the exact location of the move, the 5m chart is showing a narrower but potentially higher risk reward location at 1.3140/30 demand, as per the rally-base-rally structure created during a brief sequence of eight 5 minutes candles, suggesting a strong imbalance in favour of buyers..." the FXstreet.com report adds.
According to Valeria Bednarik, chief analyst at FXstreet.com: "Next key resistance stands around 1.3220, 50% retracement of its latest daily fall, and if above, the rally may extend up to 1.3300 area today."
"The new imbalance between buyers and sellers is now found between 1.3110 and 1.3140, where judging by the violent upmove, demand greatly exceeds demand" our in-house supply/demand daily analysis observes.
"Depending on the risk profile, if one wishes to narrow down the exact location of the move, the 5m chart is showing a narrower but potentially higher risk reward location at 1.3140/30 demand, as per the rally-base-rally structure created during a brief sequence of eight 5 minutes candles, suggesting a strong imbalance in favour of buyers..." the FXstreet.com report adds.
According to Valeria Bednarik, chief analyst at FXstreet.com: "Next key resistance stands around 1.3220, 50% retracement of its latest daily fall, and if above, the rally may extend up to 1.3300 area today."