Euro Bullish Trend Correction

Igor Kulaga from Forex Ltd at 10/19/09

EUR

The estimated test of key supports has not exactly been confirmed but the tendency of activity fall of both parties marked by OsMA trend indicator gives grounds to preserve trading plans made before almost intact. Namely, we can assume probability of  testing of Senkou Span B line of Ichimoku indicator at 1,4820/40 levels, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of shorter time interval. As for short-term buying positions on condition of the formation of topping signals the targets will be 1,4880/1,14900, 1,4960/1,5000 and (or) further break-out variant up to 1,5040/60, 1,5120/40, 1,5200/40. The alternative for sales will be below 1,4760 with the targets of 1,4700/20, 1,4640/60.

The estimated test of key resistance range levels has been confirmed and the achievement of estimated targets is supported by the tendency of rate overbought strengthening marked by OsMA trend indicator. Therefore, as for opened sales, as it was before the targets will be 1,0120/40, 1,0080/1,0100 and (or) further break-out variant up to 1,0020/40, 0,9960/80, 0,9900/20. The alternative for buyers will be above 1,0240 with the targets of 1,0280/1,0300, 1,0340/60, 1,0420/40.

The pre-planned short-term long positions were implemented with of overlap of minimal estimated target. OsMA trend indicator having marked preservation of bearish sign of indicator chart on relatively high level gives grounds for further rate correction period favouring to planning of long positions for today. On the assumption of it, we can assume probability of another test of close  1,6240/60 supports where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of shorter time interval. As for short-term buying positions on condition of formation of topping signals the targets will be 1,6300/20, 1,5380/1,6420 and (or) further break-out variant up to 1,6460/80, 1,6540/60, 1,6680/1,6720. The alternative for sales will be below 1,6180 with the targets of 1,6100/20, 1,6040/60, 1,5980/1,6000.

The estimated test of key supports has been confirmed on conditions for the implementation of  pre-planned buying positions. At the moment, considering the tendency of bearish activity fall there are grounds for preservation of opened positions with the targets of 91,20/40, 91,80/92,00 and (or) further break-out variant up to 92,40/60, 93,00/20. The alternative for sales will be below 89,80 with the targets of 89,20/40, 88,60/80, 88,00/20.