Analysis for October 1st, 2014
EUR USD, “Euro vs US Dollar”
Euro has been able to stay inside “oversold zone”; bears are supported by Super Trends, from which the price rebounded several times earlier. The target for the next several days is at the -2/8 level. If the market breaks this level, it will open “Pandora’s box” of the downtrend.
As we can see at the H1 chart, the market has been able to stay below the 3/8 level, which means that it may continue falling to reach the 0/8 one. Considering that the market has already rebounded from Super Trend, the pair may reach a new low during the next several hours.
XAG USD, “Silver vs US Dollar”
In case of Silver, yesterday my take profit worked. During a correction, I opened an additional sell order with the target at the -2/8 level. We should note, that if the price breaks it, the lines at the chart will be redrawn.
At the H1 chart, Silver is also moving inside “oversold zone”. If bears are able to rebound from Super Trend, the market may break the 2/8 level during the next several hours. In this case, I’ll move the stops on my sell orders to a local minimum.
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