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Currency Technical Report

Fri, Dec 5 2008, 12:38 GMT
by George Antonakos

FXGreece

EUR/USD

Resistance: 1,2770-80/ 1,2800-10/ 1,2850/ 1,2900/ 1,2930/ 1,2970
Support : 1,2730-40/ 1,2690-00/ 1,2650/ 1,26101,2570-80/ 1,2520/

Comment: Euro rose after the interest rate announcement, as the market saw this drastic rate cut as a measure that could help the European economy. Support at 1,2560 was confirmed once again after the double bottom formation in the hourly chart, and euro reacted towards important resistance levels at 1.2750, forming a top at 1,2850.
The break of 1,2750 would allow a move resumption to 1,2950-70, as long as retracements are limited to 1,2700 area. A move below 1,2700 would indicate weakness, and a pullback to 1,2600 will be possible.
The wider consolidations still dominates in the mid- term and its rages are found between 1,3100 and 1,2400 area. Only a clear break of those levels, would allow a change in the longer term. Until then, we move within the ranges….

*STRATEGY :
High volatility is expected today after the important economic releases from the US. We keep our positions small and try short term buy orders at the retracements, with stops below 1,2690. Our target will be a retracement to 1,2830-50. An upward break of 1,2850 may be followed with buy positions and target at 1,2930-50…
A possible downward break of 1,2680 may be followed with sell orders and target at 1,2600 area.

*The above mentioned strategy refers to orders that we may follow for personal accounts, depending on the market analysis and the potential reach of resistance and support levels. We do not encourage buy or sell orders, as its effective use is based on correct risk management and the ability of position readjustment depending on current conditions.

Published on  Fri, Dec 5 2008, 12:42 GMT