Currency Technical Report

George Antonakos from FXGreece at 11/30/09

EUR/USD

Resistance: 1,5050-60/ 1,5100/ 1,5140-50/ 1,5200
Support: 1,5015-20/ 1,4980-85/ 1,4945-50/ 1,4900/ 1,4870/ 1,4930-40

Comment : Low liquidity causes extreme reactions to the market, as we witnessed in the end of last week. Reversal signs from the false break of 1,5000 and the reversal candle formation in the daily chart, led quickly to our first targets at the base of 1,4820-40, where a new upward reaction was formed above 1,5000.
High volatility and the absence of a basic trend, make the formation of a short term strategy, difficult. As we mentioned in our last analysis, reversal signs would be confirmed if the price remained below 1,5020.
Even though we believe that sellers are more likely to dominate, and a new decline towards 1.4800-30 is possible, we remain cautious and will wait for more signs. If 1,4980 area is breached and 1.5000-20 is turned into a resistance, it will be a positive sign.
If 1,4980-00 is confirmed as support and euro moves above previous tops, it could lead us back to 1,5140-50, which should not be easily breached without a previous correction.

*STRATEGY : We will try sell orders at current levels (1,5040) adding positions at 1,5100 and placing stops above previous tops. Our target will be at 1,4850-60. We keep positions small due to high volatility…

*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...