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Currency Technical Report

Thu, Oct 23 2008, 13:44 GMT
by George Antonakos

FXGreece

EUR/USD
Resistance: 1,2850-60/ 1,2900-10/ 1,2950-60/ 1,3000/ 1,3040/ 1,3080.
Support : 1 1,2800/ 1,2770/ 1,2740/ 1,2700/ 1,2650/ 1,2600-20

Comment: Euro returned to previous lows, and we can see the first signs of stability. Lows at 1,2720-40, formed two equal waves (Α-Β and C-D) in the daily chart. Euro usually forms equal waves during its trends and this is a reason why we are optimistic despite the strong trend….
We need a reversal candle or a break of important resistance levels in order to confirm it. Until then we wait or we are very cautious at any buy position… .
Resistance is found at 1,2850-70 and 1,2640-60. An upward break of the second could lead to 1,3080, or even 1,3270-00 area. .
If resistance is not breached, the short term trend will remain bearish and a move to previous lows could follow. .
A clear break of 1,2720 would lead to 1,2530-70 area, where important long term support is found. .

Buy: We keep buy positions small until we see reversal signs and try positions at previous lows with stops below 1,2690 and targets at 1,2850-60, or at a break of 1,2850 with target at 1,2930-40.
An alternative scenario would be buy after a break of 1,2950 with target at 1,3080 and stop 1,2890, or in case of new lows, we could buy at 1,2530-60 with stops below 1,2490….

Sell : They say trend is your friend, and this couldn’t be more true in euro’s case. We will try sell positions at new lows, with target at 1,2600-30. We could also try sell orders at 1,2920-40, with stops above 1,2965. We should be careful for false breaks, as they give good sell opportunities… .

Published on  Thu, Oct 23 2008, 14:20 GMT