Currency Technical Report

George Antonakos from FXGreece at 02/08/10

EUR/USD

Resistance: 1,3730/ 1,3755/ 1,3800/ 1,3840-50/ 1,3885/ 1,3930/
Support: 1,3680/ 1,3650/ 1,3620/ 1,3590/ 1,3550

Comment : Euro has moved to new lows again, reaching slightly below 1.3600 area on Friday, but the week closed much higher.
As we had mentioned in our previous analysis, an upward reaction is expected this week, in terms of a correction, but it could lead euro towards the first important resistance levels at 1,3850 or higher.
As you can see in the daily and 4 hour chart, the lower part of the basic downward channel and the shorter term channel at the 4 hour chart, was reached at 1.3600.
First resistance emerges 1,3730-40 area. A possible break would be the first sign of a short term reversal, that could technically lead to 1,3830-50. Next targets are 1,3930 and 1,4020 area.
If 1.3730 area is not breached, or a false break is forms, it will be a sign of weakness and a decline resumption towards 1,3650 or 1,3620 will be possible.


*STRATEGY: Buy orders we opened at 1.3600-40 on Friday, and our first target will be at 1,3830-50.
New buy orders will be tried at a possible retracement towards 1,3650-80, with stop below 1,3620. Alternatively, buy orders could be tried again at a break of 1,3730, with stop below 1,3680 and target at 1,3840-50.

*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...