WEEKLY TECHNICAL OUTLOOK ON EUR/USD by AceTrader

AceTraderFX

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Updating time : 07/10/2007 23:34 GMT

EUR/USD - 1.4147...Despite falling sharply after release of stronger-than
-expected U.S. non-farm payrolls on Friday, euro quickly recovered intra-day
losses on short-covering due to U.S. Columbus Day holiday on Monday n rallied to
1.4158 b4 moving narrowly in NY afternoon session.

As the aforesaid low at 1.4032 was accompanied by bullish convergences on
hourly oscillators, suggesting decline fm 07' high at 1.4283 has indeed made a
temporary low n choppy sideways trading is envisaged in next 2-3 days (today's
holiday in Japan & U.S. shud keep euro sideways). Having said that, near term
upside bias remains for gain to 1.4187 (62% r of 1.4283-1.4032) but reckon res
area at 1.4201/11 wud cap current rebound n yield another fall later this week
as euro is expected to correct MT intermediate rise fm 1.3552 n min. 38% r is at
1.4004 but 1.3918 (50% r) shud remain intact, yield resumption of uptrend later.

Today, expect the single currency to trade narrowly due to holidays in
Japn & U.S., in view of abovementioned analysis, we're giving a ' buy on dips or
sell on upmove' strategy and one shud take profit on subsequent rise or take
profit on subsequent decline...
TECHEUR_USD(46).jpg
 
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