EURUSD tests the 38.2% retracement of 2009 Low to high range

• gregmikefx
• January 20th, 2010

The EURUSD is down testing the 38.2% retracement of the 2009 low to high range this morning at the 1.4117 level after another down day for the EURUSD.

The pair has been hit on the back of Greek worries (Straus Kahn of the IMF was on the wires talking about the seriousness of the problem. Greece is looking for aid from the IMF), the dollars strength on the back of the Republicans victory in the Massachuesett Senate election (the people of Massachusetts are voting on the excess spending being done in Washington), and on China concerns as they indicate that bank lending needs to be stopped. This should slow global and lead to the flight into the dollar out of the riskier currency pairs.

Despite all the bearishness in the EURUSD today, the support against the 38.2% retracement should attract some buying interest, with stops below.  If the price holds the support, a correction could take the pair up to the 1.4186 area where the 100 bar moving average on the 5 minute chart is found.  A move above the 100 bar MA would target the 1.4197 level which is the 38.2% of the last high to low trading range.  Keep an eye on these levels to the upside today.

Tickers: $EURUSD

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