10th August to 14th August 2009 Euro / USD
Posted by admin | Posted in Weekly and Daily Wake up | Posted on 10-08-2009
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It’s been depicted that the pair of Euro/USD has topped the charts once again with the support of break at 1.4206. Euro/USD has reached as higher to 1.4446 and shown quick reversal then on. This week’s predictions forecast that there will be basic bias downside which may further get declined reaching support 1.4007. This will be indicated as the first support which will assure that top at medium has already reached at 1.4446. The focus is then turn to strengthen the support at 1.3747. The intraday outlook conclusion shows that there will be a resistance shown beyond 1.4272 on the upside. This will be neutral.
In the entire consolidation pattern, the rise from 1.2456 would be considered as the third leg. This is evident already when viewed in a large frame. Consolidation had begun at 1.2329, which indicated its rise in the form of third leg of the whole pattern. In view to previous week’s acute reversal graph, this sudden rise may have been completed before up till 1.4446 with five waves pattern with the daily divergent bearish situation of RSI and MACD. The break at 1.3747 will confirm the bearishness and result into decline that will make Euro/USD ratio will move down to 1.2329 low.
Also, graph above 1.4446 will show the progress in rise from 1.2456. Strong resistance will be posed as soon as Euro/USD will reach retracement at 61.8% of 1.6039 till 1.2329 at support 1.4622. Once reached this stage there will be reversal.
Assuming, price action right from 1.2329, then it would be the consolidation in the larger down trend and the fall from 1.6039 will get resumed once the consolidation pattern is completed. If it moves below 1.2329, then this will be the indication that resumption of down trend is a test on 1.1639 key availing long term support.
The conclusion shows that we have to depend on this long time bearish view till the resistance 1.4867 is maintained.
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