Forex Technical Analysis on Majors
Stoyan Mihaylov from www.deltastock.com at 10/12/09
EUR/USD is in a broad consolidation, after bottoming at 1.2331 (Oct.28,2008). Technical indicators are neutral, and trading is situated above the 50- and 200-Day SMA, currently projected at 1.4134 and 1.3523.
The pair is still in the downtrend from 1.4817 and keeping in mind that Friday's attempt to break above 1.4780 resistance failed, the bias should be considered negative for 1.4615, en route to 1.4478. Nevertheless, we continue to think, that current slide is just a part of the consolidation pattern below 1.4842 and is expected to hold above 1.4410-44 dynamic support on the daily frame. Intraday resistance comes at 1.4725, followed by the crucial 1.4775.
Current level - 90.40
A short-term bottom has been set at 87.12 and a large consolidation is unfolding since. Trading is situated below the 50- and 200-day SMA, currently projected at 94.86 and 94.84.
Friday's sell from 90.50 resistance failed to break below 88.01 and bottomed at 88.62. This confirms, that a bottom is already in place at 88.01 and that level is the end of the downtrend from 97.79. The pair has entered a larger corrective phase, that will target 92.10-40 resistance area. Current intraday bias is positive with nearest support at 89.90 and risk limit below 89.48.
Current level- 1.5766
The pair is in a downtrend after peaking at 1.7042. Trading is situated between the 50- and 200-day SMA, currently projected at 1.6454 and 1.5258.
The downtrend from 1.6130 resistance accelerated and broke below 1.5855 "trigger" point. The consolidation pattern above 1.5766 is already completed on the daily frame, so current focus is set at 1.5352. Resistance comes at 1.5798 and crucial is 1.5884.