Currency Technical Report

Daily Forex Technicals | Written by FX Greece | May 07 09 12:40 GMT |

EUR/USD Resistance: 1,3330-40/ 1,3385/ 1,3410/ 1,3440/ 1,3465/ 1,3500/ 1,3520 Support : 1,3230-40/ 1,3190-00/ 1,3150/ 1,3100/ 1,3080/ 1,3055/ 1,3000 Comment: Euro is forming a sideways consolidation in the short term, after repositioning in the beginning of the week as important announcements are expected today and tomorrow. As we had mentioned in previous analysis, bears gained momentum at the wider area of 1,3400 and a reversal candle was formed in the daily chart. The move, though, was not resumed below important support levels that set the ranges for the short term uptrend, that would confirm the bearish strength. In 4hour and hourly chart, a sideways consolidation is being formed and a downward break will give the confirmation. Important support emerges at 1,3200-30 and a strong move below these levels could lead to 1,3030-50 area, with interim support at 1,3100. An alternative scenario would be that euro moves towards 1,3200-40 during retracements or a weak move below these levels and back to 1,3440 tops. Interim resistance is found at 1,3370 and 1,3400. An upward break of previous tops would lead to a move towards 1,3580-00 at first and even higher, with target at 1,3850-00 (04/05 analysis). Euro's high correlation with stock indexes, which are reaching important resistance levels, is an indication that confirms the downward scenario, as long as these resistance levels are not breached. An upward break could lead to a rise in EUR/USD above important resistance levels. The signs that we have from oil and commodities are positive. As we know, dollar usually moves in the opposite direction to oil and commodities, at least during the basic trend. An important rise in commodities should lead to an important decline in dollar. Oil and other basic commodities these days, have breached important technical resistance levels and this makes us cautious. In the end of today's analysis, we present charts for Dow Jones, DAX, Crude Oil, Reuters/Jefferies CRB Index which shows the commodity prices. As you can see, stock indexes are reaching important resistance levels, the exit of the consolidation in crude oil and the base at CRB index is breached. STRATEGY : We keep positions small before the announcement, while moving within the consolidation. Buy orders at 1,3210-30 should have stops placed below 1,3190. We suggest to refrain from short term positions as high volatility is expected. A downward break of 1,3210-30 will be followed with sell orders and target at 1,3100 and 1,3050. 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.