DAILY EUR/USD TECHNICAL OUTLOOK
Last Update At 22 Oct 2014 00:33GMT
Trend Daily Chart
Sideways
Daily Indicators
Turning up
21 HR EMA
1.2741
55 HR EMA
1.2761
Trend Hourly Chart
Near term down
Hourly Indicators
Falling
13 HR RSI
32
14 HR DMI
-ve
Daily Analysis
Consolidation with downside bias
Resistance
1.2888 - Last Wed's 3-week high
1.2840 - Y'day's high n last Thur's NY high
1.2784 - Y'day's hourly res
Support
1.2706 - Last Thur's low
1.2669 - Last Tue's European morning high
1.2625 - Last Wed's low
. EUR/USD - 1.2715... Despite euro's initial brief rise to 1.2840 in Europe on Tue, the single currency n then tumbled after Reuters reported the ECB was planning on corporate bond purchase as early as Dec. The pair weakened to as low as 1.2715 near NY close n then marginally lower to 1.2706 in Australia today.
. Although last week's rally to 1.2888 (Wed) signals the MT downtrend fm 2014 2-1/2 year peak at 1.3995 (May) has formed a temporary bottom at Oct's 2-year low at 1.2500, y'day's selloff suggests 1st leg of said corrective upmove has ended there n as long as hourly chart res at 1.2784 holds, consolidation with downside bias remains, a firm breach of 1.2706 sup (reaction low fm last Wed's 1.2888 high) wud add credence to the abv view n bring further weakness twd 'dynamic' sup at 1.2648 (this is 61.8% r of 1.2500-1.2888) but reckon pivotal sup at 1.2605 wud remain intact. On the upside, only a rise abv 1.2888 res wud bring a stronger correction to 1.2958, this a 'minimum' 38.2% r of MT intermediate fall fm 1.3700 (Jul high).
. Today, we're holding a short position in anticipation of further weakness n wud take profit on next decline as 1.2648 shud remain intact.
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