Daily FX Outlook

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EUR/USD over sold

Thu, Dec 29 2011, 18:46 GMT
by Asma Nazir Automaticx | View company's profile

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EUR/USD after taking a good dip seems to be getting a bit oversoldand it is fair to say that sooner or later either it will take some goodretrace or it will look to settle for a short term sideways trend. This retracementwill surely excite the traders and both intra-day and long term traders willlook to sell EUR/USD for rise to retracement levels and catch EUR/USD in a longterm downward trend. The first such level can be seen something around 1.3000level which is also an important psychological level. If the retracement isextended above 1.3000 level, then the next level can be seen around 1.3160level. On the lower side, 1.2860 seems to be holding an important weekly leveland once EUR/USD manages to break that level, the next target can be seenaround 1.2720 level but that level seems a bit far cry at the moment.

Looking at the moving averages used in the daily charts, it can beseem that EUR/USD is comfortably below all the three moving averages and theentry target can be seen around 1.3000 level around which the short term movingaverage is at the current moment and 1.3160 level around which the medium termmoving average is at the moment.

Published On Thu, Dec 29 2011, 18:49 GMT

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