EUR/USD Technical Analysis 20 October 2009

[forexnewsdaily]

forexnews84.blogspot.com/2009/10/eurusd-technical-analysis-20-october.html

EUR/USD Open 1.4962 High 1.4993 Low 1.4836 Close 1.4963

On Monday Euro/Dollar descended to the 1.4836, from where started rising up to 1.4979, closing the day at 1.4963. Of the 1 hour chart the currency couple has climbed from 1.4514 to 1.4989, forming clear upward channel. But while long range outlook seems to be under the bulls control, in the short term downward adjustments do not come unexpected. Yesterday's correction of the European currency to the 1.4836 bottom is good key support. Break below that level might shake the ascending scenario and lead quotes further down towards 1.4705. Going above this morning's top and first resistance 1.4995 would confirm the bullish scenario and may continue the upward momentum towards next target 1.5110. The CCI indicator is positive on the 1 hour chart, indicating ascending pressure.

Technical resistance levels: 1.4995 1.5110 1.5235
Technical support levels: 1.4835 1.4705 1.4580
Trading range: 1.4955 - 1.5020
Trend: Upward
Buy at 1.4967 SL 1.4937 TP 1.5007

[mich]

Originally Posted by forexnewsdaily

forexnews84.blogspot.com/2009/10/eurusd-technical-analysis-20-october.html

EUR/USD Open 1.4962 High 1.4993 Low 1.4836 Close 1.4963

On Monday Euro/Dollar descended to the 1.4836, from where started rising up to 1.4979, closing the day at 1.4963. Of the 1 hour chart the currency couple has climbed from 1.4514 to 1.4989, forming clear upward channel. But while long range outlook seems to be under the bulls control, in the short term downward adjustments do not come unexpected. Yesterday's correction of the European currency to the 1.4836 bottom is good key support. Break below that level might shake the ascending scenario and lead quotes further down towards 1.4705. Going above this morning's top and first resistance 1.4995 would confirm the bullish scenario and may continue the upward momentum towards next target 1.5110. The CCI indicator is positive on the 1 hour chart, indicating ascending pressure.

Technical resistance levels: 1.4995 1.5110 1.5235
Technical support levels: 1.4835 1.4705 1.4580
Trading range: 1.4955 - 1.5020
Trend: Upward
Buy at 1.4967 SL 1.4937 TP 1.5007

What is your view on the daily EUR/USD chart? It appears to me that the instrument has completed the main 5 waves of Elliot Waves and we are now at the start of correction wave A which is a downtrend. I expect Fib retracements of 1.4797 (38.2%), 1.4736 (50%) and 1.4675 (61.8%) (please see the attached chart).

Thanks