Currency Technical Report

George Antonakos from FXGreece at 11/02/09

EUR/USD

Resistance : 14780-00/ 1,4850-60/ 1,4890-00/ 1,4930/ 1,4960/ 1,5000
Support :1,4730/ 1,4710-20/ 1,4680/ 1,4640/ 1,4610/ 1,4580/ 1,4540/ 1,4500

Comment: Euro declined in the end of the previous week towards 1,4680-00 area, which was tested as support again. The short term downtrend could not be reversed, despite the positive signs in the daily chart on Thursday, and important resistance at 1,4850-60 could not be breached.
The time remains between 1,4670-90 and 1,4850-70 area. A downward break of the base of 1,4670, would be a negative sign and may lead to 1,4500. Interim support is found at 1,4640 and 1,4580-90.
The upward reaction from the base of 1,4670-90 led to the first resistance levels at 1,4780-90, while more important resistance emerges at 1,4850-60. An upward break of the second, will confirm the bullish strength and first target will be at 1,4930 and 1,4980-00 area.
For now, we will focus on 1,4680-00 and 1,4850-70 area, and wait for the market’s reaction at a possible reach of these levels.

*STRATEGY : We could try buy orders at the retracements towards 1,4700-20, with stops below 1,4660, while sell orders could be tried at 1,4840-60, with stops above 1,4880… All positions should be kept small…

*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...