Currency Technical Report
George Antonakos from FXGreece at 11/05/09
EUR/USD
Resistance: 1,4850-60/ 1,4890-00/ 1,4930/ 1,4960/ 1,5000
Support : 1,4800-10/ 1,4760/ 1,4710-20/ 1,4680
Comment: The false break of the base of 1,4680-00 led to an upward reaction, as we had described in our analysis yesterday, towards 1,4900 after FED’s announcement. The downward move from these levels seems corrective and the price is likely to return to 1,4900-30 area. Above 1,4930, next targets are set at 1,4980-00 and then 1,5060-70.
As you can see in the daily chart, Bollinger Bands are tight and a formation of a sideways move is possible. This will be our short term scenario, allowing prices to move up to the upper Bollinger ( 1.5050-00 area) and then return back to lower levels…
Today’s ECB rate announcement and the press conference later should lead to high volatility and we must be cautious regarding our short term positions…
*STRATEGY : We will try buy orders at 1,4830-40, with stops below 1,4800 and target at,4930. A move towards 1,4910-30, especially if it is reached before the announcement, will be used for sell orders with stops above 1,4950.
After the announcement, we will try sell orders at 1,4980-00, adding more at 1,5040-50.
*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...
