The Euro has been rising steadily since the April 09 low. It made a top on 3 Jun 09, will this top hold for a while?When looking for significant support and resistance levels we look at the ranges produced by the major Bear and Bull campaigns. The last Bull campaign that the Euro had was from Nov 05 to the all-time-high (ATH) in Jul 08. And the previous Bear campaign was from ATH to the low in Oct 08. Since then we have seen the commencement of a new Bull market. The 50% levels of such ranges are of great importance.
Since the low in April 09 we have seen some steady gains with only small reactions (downwards movements). However the reaction from the top last week (3 Jun 09) has been bigger, possibly suggesting that the trend has changed.
Last week the Euro went through the 50% level of the previous Bear market, flexing some muscle, but it only managed to close above the level twice. Since then it’s come down and is currently trading below the level. In other words it met a resistance level. However below the current trading level there is support; the 50% level of the previous Bull market. Adding strenght is a double bottom formation as well as the top in March 09 that migh act as a support level.
It is worth keeping an eye on the price movements over the short term; if the Euro breaks through the significant resistance level it’s a good sign of strenght. And vice versa, if it falls through the significant support level it’s a sign of weakness and we may expect further downside. Let the market tell us what it is doing – don’t get fixed on what you WANT it to do (it doesn’t listen 
).
Euro support and resistance