Euro Consolidation Before Further Rise

Igor Kulaga from Forex Ltd at 10/21/09

EUR

The estimated test of key supports was confirmed but with conditions for the implementation of preplanned buying positions. OsMA trend indicator, having marked close activity parity of both parties gives grounds to suppose further rate range movement favouring to buyers planning. Therefore, at the moment, as for opened long positions the targets will be 1,4980/90, 1,5010/20  and (or) further break-out variant up to 1,5060/80, 1,5140/60, 1,5200/20. The alternative for sales will be below 1,4800 with the targets of 1,4740/60, 1,4680/1,4700.

The estimated test of key resistance range levels has been confirmed on conditions for the implementation of pre-planned short positions. OsMA trend indicator having marked in the general outlook the preservation of bearish development priority gives also grounds for the preservation of opened sales with the targets of 1,0080/1,0100  and (or) further break-out variant up to 1,0020/40, 0,9960/80, 0,9900/20. The alternative for buyers will be above 1,0240 with the targets of 1,0280/1,0300, 1,0340/60, 1,0420/40.

The pre-planned long positions from key supports were implemented with the achievement of main estimated targets. OsMA trend indicator having marked close activity parity of both parties gives grounds to suppose further period of rate range movement but favouring to buyers direction of planning for today. Therefore, at the moment considering current bullish cycle of indicator chart we can assume probability of rate return to close 1,6380/1,6400 supports where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of shorter time interval. As for short-term buying positions on condition of formation of topping signals the targets will be 1,6440/60, 1,6500/20 and (or) further break-out variant up to 1,6560/80, 1,6640/60, 1,6700/40. The alternative for sales will be below 1,6200 with the targets of 1,6140/60, 1,6080/1,6100, 1,6000/20.

Long positions, opened and preserved before, had positive result in the overlap of minimal estimated target. OsMA trend and preservation of minimal bullish party priority gives grounds for further supporting of buyers planning preferences for today. On the assumption of it, as well as considering current bearish cycle of indicator chart we can assume probability of rate return to Senoku Span B line of Ichimoku indicator at 90,10/20 levels where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of shorter time interval.    As for short-term buying positions on condition of the formation of topping signal the targets will be 90,50/60, 90,90/91,00, 91,20/30 and (or) further break-out variant up to 91,60/70, 92,00/10, 92,40/50. The alternative for sales will be below 89,80 with the targets of 89,20/40, 88,60/80.