Currency Technical Report

George Antonakos from FXGreece at 10/18/09

EUR/USD

Resistance :1,4960-70 / 1,5000-10/ 1,5040-45/ 1,5080/ 1,5110
Support :1,4900/ 1,4870/ 1,4840/ 1,4810-15/ 1,4790/ 1,4770/ 1,4750-60/ 1,4700

Comment: Euro’s rise was limited below 1,5000 area, confirming our scenario regarding the strong resistance levels of 1,4950-70. Even though the upward move was not strong enough to confirm the resumption of the move to higher levels, retracements remain weak and buyers still dominate. Crude oil has breached its wider sideways formation and stock indices have formed new highs…
Technically, higher targets at 1,5100-30 and 1,5250-00 have not been reached and we will follow the uptrend or stay cautious regarding sell orders until we see reversal signs.
First technical support emerges at 1,4880-00, followed by yesterday’s lows at 1,4840-50 area. If these levels are confirmed, the rise is likely to be resumed towards higher targets at 1,5030-50. Next targets are set at 1,5100-30, but the possibility of a reach today is low.
A move below 1,4840, could allow a deeper correction with next target at 1,4750-70. The reversal ranges are set below 1,4700…

*STRATEGY: Our strategy yesterday was confirmed and today we will follow the uptrend with buy orders at του 1,4880-90, adding more at 1,4850, and setting stops below 1,4815. Our target will be at 1,4970. Small sell orders could be tried at 1,5030-50, with stops above 1,5075 and target at 1,4930-40.

*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...