Forex Forecast May 7th

EUR/USD slowed down

Euro slowed down last week after five weeks of gains against the USD, the pair didn’t manage to make a new high coming short a few pips of 1.3680 the YTD high. Price is forming has entered into a trading range for the past 3 weeks, bouncing around 1.3523 and 1.3680, a break on either side of this range would set the terrain for future more cleaner swing moves. If price gets bellow this 150/160 pip range, this meaning it is going to break the resistance of April 16th low at 1.3523, we can start looking at March 2005 high of 1.3483, March 21st high of 1.3410 and December 3rd high of 1.3365 as clear cut examples of former resistance levels now turned into support. If on the other hand the Euro recovers some of its strength and takes another shot at breaking above the 1.3668/1.3680 resistance we have to see how price action develops on the lower timeframes to establish some potential targets and resistance areas.

Resistance Levels

1.4532 – March 2005 High
1.3668 – December 2004 High

Support Levels

1.3523 –April 16th Low
1.3483 –March 2005 High
1.3410 – March 21st High
1.3365 – December 3rd High
1.3300 – January 7th High