EURO/STG
Tue, Oct 27 2009, 07:37 GMT
by Carol Harmer
EURO/STG
Eur/Stg hit 9242/45 yesterday and then crashed lower taking out all of the support levels until reaching the short term 61.8 fib level of 9094. Now this has a sideways motion for the past few hours, and this has eased the severe oversold conditions on the short term charts.
As long as 9094 can contain the downside there is scope now for this to trade higher once more. 9156 is the level to overcome this morning and if the market can do this there is scope for another move higher for 9183 initially. Buyers will be looking to cover to here. Sellers may come in, but they will be wary and they will not hold above 9195 as a break above here triggers move back to 9245.
Now if 9094 breaks look for sellers to come into the market and drive this lower for 9062 initially. Sellers will cover. Buyers will test the water, but will reverse a break of this support as 8995 to 8996 would then be the targeted area.
