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Friday, March 22, 2013

$EURUSD update

EURUSD was higher due to short covering overnight as it consolidates around the 50% retracement level of the November-February rally crossing at 129.28. 

Stochastics and the RSI are diverging but are neutral signaling that sideways trading is possible near-term. If June extends the decline off February's high, the 62% retracement level of the November-February rally crossing at 127.37 is the next downside target. Closes above the reaction high crossing at 131.43 are needed to confirm that a low has been posted. 

First resistance is the 20-day moving average crossing at 130.22. 
Second resistance is the reaction high crossing at 131.43. 

First support is Tuesday's low crossing at 128.52. 
Second support is the 62% retracement level of the November-February rally crossing at 127.37.