Monday, October 23, 2006
EUR/USD
Hello all,
After the Euro rally on Thursday, the pair entered a consolidation cycle on Friday and traded in a narrow range of 45 pips. Support is formed by the 1.2600 mark backed by 1.2560, 1.2525 and 1.2480. Resistance is formed by 1.2640 followed by 1.2660, 1.2700 and 1.2730.I expect the Euro to face a decent barrier into the mid 1.26 area due the downtrend channel formed on the daily charts, its resistance being seen around 1.2660 now. Another good reason to believe that the said resistance may be a strong one, is the 50 fib retracement of the 1.2830-1.2480 move, seen in the same 1.2660 area. Daily sentiment is bullish while the hourly is neutral. Range trading is likely to continue due the lack of major economical events today. Good luck trading all.
Trade recommendation
Short in the 1.2635 area, stop above 1.2665, objectives at and below 1.2590. Long in the 1.2575 area, stop below 1.2545, objectives at and above 1.2625.
After the Euro rally on Thursday, the pair entered a consolidation cycle on Friday and traded in a narrow range of 45 pips. Support is formed by the 1.2600 mark backed by 1.2560, 1.2525 and 1.2480. Resistance is formed by 1.2640 followed by 1.2660, 1.2700 and 1.2730.I expect the Euro to face a decent barrier into the mid 1.26 area due the downtrend channel formed on the daily charts, its resistance being seen around 1.2660 now. Another good reason to believe that the said resistance may be a strong one, is the 50 fib retracement of the 1.2830-1.2480 move, seen in the same 1.2660 area. Daily sentiment is bullish while the hourly is neutral. Range trading is likely to continue due the lack of major economical events today. Good luck trading all.
Trade recommendation
Short in the 1.2635 area, stop above 1.2665, objectives at and below 1.2590. Long in the 1.2575 area, stop below 1.2545, objectives at and above 1.2625.
