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Currency Technical Report

George Antonakos from FXGreece at 11/27/09



Resistance: 1,4930-50/ 1,4980-00/ 1,5030/ 1,5080/ 1,5140
Support: 1,4840/ 1,4800-10/ 1,4750/ 1,4700/ 1,4660/ 1,4600-10

Comment : The false break of the sideways formation in a period of low liquidity, combined with a reversal candle in the daily chart above the Bollinger Bands, indicate that the downward move is likely to continue.
As we mentioned in our analysis, yesterday, higher target would only be valid if retracements remained above 1,4980-00 area.
However, the move below 1,4980 indicates that a false break is possible, and usually a false break of an important formation, could be a beginning of a strong downward move.
Our first target will be at 1,4800-30, while a move below these levels will bring the area of 1,4600-50 into focus, due to a lack of important interim support levels..
If this scenario is confirmed, all upward reactions should be limited at 1,5000-20 area. For the time being, we will wait for the market’s reaction to the current important reversal signs…

*STRATEGY : We will use upward reactions towards the middle or the upper Bollinger to try sell orders. Stops should be set above 1,5030.
For longer term positions and targets from the daily charts, stops could be set above 1,5150 tops…

*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...

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