Currency Technical Report

Daily Forex Technicals | Written by FX Greece | May 04 09 11:20 GMT |

EUR/USD Resistance: 1,3330-1,3340/ 1,3390-00/ 1,3725-30/ 1,3470/ 1,3510 Support : 1,3270/ 1,3220-30/ 1,3170-80/ 1,3140-50/ 1,3100/ 1,3050 Comment: Euro is moving again above 1,3300 area in the beginning of the week, testing 1,3340-50 resistance. According to our short term scenario in our last analysis, important resistance at 1,3400 should be reached and a false break of the downward channel is possible. For this scenario to be valid, any upward reaction should be limited below 1,3340-50 and first support at 1,3270-80 and 1,3220 should be breached downwards. The short term reversal ranges are set at 1,3100 and a possible break could lead to our next targets at 1,3090-3110. If support levels are confirmed and euro moves above 1,3400 area, a move towards our next targets at 1,3520 and 1,3580 or even higher, will be possible. In that case, the rise from March lows would be an upward wave in terms of the wider triangle formation (weekly chart). According to this theory, 5 waves should be formed and we are currently at the third. If this wave is not completed, next target will be at 1,3900 or even 1,4400. A downward move from these levels should form the fourth wave (wave d in the chart), then a rise as the fifth wave (wave e) and at last an sharp decline should be formed in the end of the year according to our long term scenario and the cycle theory… STRATEGY Our strategy remains the same 'We will use retracement towards 1,3330-40 for sell orders with stops above 1,3420. First target will be at 1,3190-00 followed by 1,3100 area.' A clear break of 1,3420 may be used for buy orders and target at 1,3500-20 and 1,3580 area… Today markets at UK and Japan are closed and high volatility is expected due to low liquidity. We should be cautious and 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.