Currency Technical Report

Daily Forex Technicals | Written by FX Greece | Jan 12 09 12:57 GMT |

EUR/USD Resistance: 1,3440/ 1,3475-80/ 1,3530-40/ 1,3610-30/ 1,3670/ 1,3710/ 1,3750/ 1,3800 Support : 1,3380/ 1,3350/ 1,3310/ 1,3280/ 1,3250/ 1,3215-20/ 1,3170/ 1,3130 Comment: Euro closed with losses last week, which were widened after Friday's releases from the US, regarding the unemployment rate and Non Farm payrolls. Dollar rose despite the increase of 500.000 in job losses and unemployment rate at 7,2% and the break of 1,3600 and 1,3550 support, led to our net targets at 1,3400-20. As we had mentioned in our analysis on Friday, the market was already expecting that number and only a much higher outcome would be able to bring new pressure to the dollar… This week is full of important economic releases, such as retail sales, CPI and TIC Long-Term Purchases and most important on Thursday, the ECB interest rate decision. 'The market expects a 0.50% cut in European interest rates after the inflation's decrease below 2,00% and this may help the uptrend, but it all depend on the comments from Trichet and other officials regarding the interest rate decision. Technically, EUR/USD is in an overbought condition in the 4 hour and the hourly chart and an upward reaction seems as a possible scenario. First important resistance is found at 1,3470-80, followed by the more important base of 1,3530-50. A break of the second could lead to our next target at 1,3630-40, or maybe a retracement to 1, 3800, in terms of a consolidation. If the short term downtrend remains valid and first resistance at 1,3470-80 is confirmed, may bring euro to previous lows at 1,3300-20. A downward break of 1,330, would have as next possible target the area of 1,3100, canceling our expectations for a retracement above 1.4000 or higher… The daily close would give more indications regarding a possible strategy… An upward reaction to 1,3470-80 or 1,3530-50 area is a possible scenario, and we could try buy orders at the retracements with the intention to add more at 1,3310-30, with stops below 1,3275. Otherwise, we could try sell orders after a break of 1,3300, with target at 1,3220-30 or 1,3100, or after a reach of 1,3530-50 resistance. 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.