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EUR/USD: Selling the rally

Tue, Nov 3 2009, 12:34 GMT
by Valeria Bednarik

FXstreet.com Independent Analyst Team


After breaking key support level at 1.4700 area, and reaching extreme over sold conditions in the hourly chart, pair is attempting an upside correction, that should reach 1.4680/1.4700 the most. If pair failure to break higher, I would be selling around that level watching again for the daily lows. Also, a break under 1.4610 with strong price acceleration and high volume will suggest more downside for today, and pair should approach to the 1.4550 strong support zone.

Watch for U.S. indexes also, as a break under yesterday’s low (very close to current futures levels), could accelerate the fall.

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Follow the markets with the author of the The best pair to trade now report:

Valeria Bednarik in her blog The advisor Blog.


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Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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