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EUR/USD Overview 06.10.2009

EURUSD is touching the resistance line now, we can see that it has tried to break it but came back quickly.

For bulls to feel better prices needs to be around ~1.4100, for now bears are hiding in a forest and while this is happening bulls are jumping.

Resistance line has become important for bulls and bears, both sides.

It is better to look for buying possibilities at this time, but with a care.

Currency Technical Perspective 06.10.2009

EUR/USD Current Price: 1.4101

Bullish Hourly Sentiment is seen as Price breaches the Hourly 200SMA at 1.4100 Confluence with Daily Dynamic Support.

A potential 20SMA/200SMA Hourly Bullish Cross Formation will take the Unit into Oversold Levels with RSI Readings and Slope, as Price sees Daily Static Resistance at 1.4158.

Further Continuation sees a potential Hourly Double-Top Formation at 1.4242, as Price sees 1.4253 Resistance.

Failure to Clear the 200SMA with Significance sees a Correction to the 1.4005 Daily Pivot, followed by the 1.3962 and 1.3916 Dynamic and Static Support Areas in the Immediate-Term.

Strengthening Of Euro's Bullish Direction

EUR

The pre-planned short positions from key resistance range levels have been implemented with the attainment of minimal anticipated targets.

Further implementation of break-out buying variant had positive result on minimal target with relative bullish activity rise at the break-out of key resistance range levels.

Therefore, at the moment, considering sign of bullish development incompleteness as well as descending direction of indicator chart we can assume probability of rate return to channel line “2” at 1,4020/40 levels where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval.

Euro Technical Analysis 06.10.2009

EUR: Buy at 1.4115; stop well below 1.4000

EUR

Comment: Bouncing smartly from the 26-day moving average and retracement support, adding weight to our view that the longer term trend is to a stronger Euro.

Today’s push above the 9-day moving average is impressive and should add to bullish momentum.

Strategy: Buy at 1.4115; stop well below 1.4000.

Short term target 1.4225, then 1.4325.

Currency Technical Analysis 06.10.2009