Bullish Correction in Euro Completed or Risk of Bearish Break

Igor Kulaga from Forex Ltd at 02/10/10

EUR
The estimated test of key resistance range levels has been confirmed with conditions for implementation of the pre-planned short positions. OsMA trend indicator, having marked relative rise of bearish activity as well as current cycle of bearish activity, suggests holding of earlier opened short positions with the targets of 1,3700/20, 1,3640/60 1,3560/80 and (or) further break-out variant up to 1,3500/20, 1,3440/60, 1,3380/1,3400. The alternative for buyers will be above 1,3860 with the targets of 1,3900/20, 1,3960/80, 1,4020/40.

CHF
The estimated test of key supports has been confirmed with conditions for implementation of the pre-planned buying positions. OsMA trend indicator, having marked relative rise of bullish activity after formation of bullish reversal signal, favors holding of open long positions with the targets of 1,0720/40, 1,0780/1,0800 and (or) further break-out variant up to 1,0840/60, 1,0920/40, 1,0980/1,1000. The alternative for sales will be below 1,0600 with the targets of 1,0540/60, 1,0480/1,0500.

GBP
The estimated test of key resistance range levels has been confirmed, however, relatively high level of bullish activity, marked by OsMA trend indicator, did not favor immediate implementation of the pre-planned short positions. Therefore, at this point, considering supposition of bullsi activity cycle incompleteness, we can assume attainment of channel line 1 at 1,5740/60, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term sales on condition of the formation of topping signals the targets will be 1,5680/1,5700, 1,5620/40, 1,5520/60 and (or) further break-out variant up to 1,5440/60, 1,5360/80, 1,5260/1,5300. The alternative for buyers will be above 1,5820 with the targets of 1,5860/80, 1,5960/1,6000.

JPY
The estimated test of key resistance range levels has been confirmed with conditions for implementation of the pre-planned short positions. OsMA trend indicator, having marked fall in activity of both parties, suggests holding of earlier opened sales, however, adds to risks of some further rate correction period, however, the upside should be limited by the below mentioned alternative for buyers. Though, as earlier, the targets for sales will be 89,00/20, 88,40/60 and (or) further break-out variant up to 87,80/88,00, 87,20/40. The alternative for buyers will be above 90,20 with the targets of 90,60/80, 91,20/40.