FXstreet.com (Barcelona) – Following a US holiday, majors enter Asia consolidating in very tight ranges, with Euro having lost ground amid renewed fears over sovereign debt woes. Spain bond auction however, has been pretty successful giving the common currency some support after falling towards 1.3245 price zone early Europe. At the time of writing, the pair is heading lower in early Asian trade, presently at 1.3275.
Valeria Bednarik, Chief Analyst at FXstreet.com, offered her technical view, saying: “Quoting below 20 SMA in the hourly chart, momentum has a slightly bullish tone aiming to cross its midline, suggesting a break above 1.3310 price zone could confirm further gains on the upcoming hours”.
Valeria added: “4 hours chart indicators however, remain bearish, although 20 SMA remains strongly bullish, capping the downside barely below current level, around 1.3280. Still, buyers will feel comfortable as long as price holds above 1.3240/50 price zone; lose of this last, could trigger a deeper fall towards the 1.3180 price zone”.
Support levels: 1.3280 1.3245 1.3210, Resistance levels: 1.3310 1.3335 1.3360