Spot Euro Forecast for 23rd January 2013

Spot Euro Forecast for 23rd January 2013

EURUSD failed just below the 100 week moving average at 1.3382, topping at 1.3372 and dived towards 1.3260/30 where we suggested exiting all shorts and buying in to longs expecting a good bounce. The market bottomed at 1.3267 so the levels worked quite well yesterday.

The 100 week moving average at 1.3382 could pose a problem again today and we have resistance again at 1.3395/1.3405 which should remain a very tough obstacle. A good chance therefore of a high for the day again if tested but if we do break above here the next target of 1.3491 should be achieved this week.

1.3310/00 is support but if this is broken we should see a move towards 1.3260/30. Once again we exit all shorts and buy in to longs here expecting a good bounce. We do need a stop loss below 1.3200 however for a test of the next support at 1.3150/25 which should offer an excellent buying opportunity.

Credit : FX Empire Analyst - Jason Sen