Currency Technical Report

Daily Forex Technicals | Written by FX Greece | Nov 03 08 13:31 GMT |

EUR/USD Resistance: 1,2865-75/ 1,2940/ 1,3000/ 1,3050/ 1,3100-20/ 1,3170 Support : 1,2800-10/ 1,2750/ 1,2700-10/ 1,2620/ 1,2575-80/ 1,2500/ 1,2440/ 1,2390/ 1,2330... Comment : A week full of important economic announcements is starting, with interest rate decisions from Europe and UK, Non Farm Payrolls and unemployment rate from US, ISM, US elections and many more that are likely to cause high volatility in the markets. The expected rate cut from Europe may compensated by negative economic released, expected from US, so we cannot make a clear prediction. As we mentioned in our previous analysis, market's prediction this period is difficult and so do short term strategies . According to the technical outlook, oscillators are in an oversold area and a base is being formed in the weekly chart, while in the daily chart Thursday's and Friday's negative candles give a negative sentiment. First basic support is found at 1,2580-2620, followed by 1,2400-50. The big fall from 1,3290-00 tops makes the reaction from Sunday's open corrective, as at 1,2900-20 the 38,2% retracement level will be completed (the decline from 1,3297- 1,2667). We will focus on 1,2980-00 area(50%) in the beginning of the week, and an upward break could lead to 1,3170 or previous tops. A sideways consolidation is possible and we should wait for the market's reaction in the beginning of the week and the month in order to form a more detailed strategy. STRATEGY Buy: The last reaction cancels any buy strategy at current levels, so we should wait until a break of 1,2930, with stops below 1,2870 and target at 1,2980-00, or a retracement to Friday's lows or support levels at 1,2580-00... Buy orders could also be tried at a possible break of 1,3030, with target at 1,3170-00 or previous tops... Sell: Bears should appear at 1,2975-00 resistance levels and also at 1,2910-20 area. We should try sell orders at these levels only with the intention to add positions at 1,2975-00. Stops could be set above 1,3060 and target at 1,2800-30... Sell positions could be tried at a break of 1,2750, with target at 1,2650-60 or 1,2580-00 and stops above 1,2810... Due to high volatility we should keep our positions small... FX Greece DISCLAIMER The details and information included in the above analysis, are part of research based exclusively on currency charts and are of purely instructional and educational nature. None of the information featuring in the analysis can be considered as an invitation for opening positions in FOREX market or in the market of forward contracts or any securities listed on an organized or unorganized market. We assume no responsibility for any kind of losses ,profits or property loss resulting, in whole or in part, from acts that are based either directly or indirectly on the processing or the use of information, details and strategies, the reader may find in the analysis. The readers hold full responsibility for the use and the results of their actions. The recipients of the analysis must acknowledge and accept that investment choices of any kind, especially concerning the FOREX market, contain risks (high, low and occasionally zero) of reduction or even loss of their investment. Therefore, they should always be cautious prior to any kind of action. We reserve the right to change the terms and the characteristics of the analysis. The contents of the analysis are solely intended for personal use. They may not be retransmitted, reproduced, distributed, published, adapted, modified or assigned to third parties in any way whatsoever. Anyone having access to them is required to comply with the law provisions on the protection of third party intellectual property rights.