Currency Technical Report
George Antonakos from FXGreece at 10/22/09
Comment: Yesterday’s rise above 1.5000 was expected and our basic targets are being reached... The basic target from the break of the June-August sideways formation is 1.5100 area ( clear in the daily chart).
We are cautious regarding the break of 1,5100, as a sideways formation which could be used as a base for a new rise, is possible. Another scenario would be the formation of an important corrective move.
The area of 1,4980-00 is turned into a support and a move above 1,5130 would be a sign of strength, binging the area of 1,5250-5300, back in the game. .
Important support emerges at 1,4960-70 and 1,4930 area . If these levels are confirmed, the rise could be resumed to previous tops. Next support emerges at 1,4880-90 and 1,4830, which is the low of the last base before the tops. A reach of these supports will indicate that a short term top has been formed and a consolidation will be possible with ranges between 1,4800-1,5000..
For now, we will focus on 1,4960-70 and 1,4920-30 support for strength signs and 1,5100 for retracement signs.
*STRATEGY: Our yesterday’s targets were not achieved for 10 Pips and today we will try buy orders at a possible retracement towards 1,4940, adding positions at 1,4920, and placing stops below 1,4870. Our target will be at previous tops.
In case of a rise resumption without a previous retracement below 1.4970, we will try sell orders at 1,5070-80, adding more at 1,5100, and placing stops above 1,5150. Our target will be at 1,4970-90 area…
*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...