[B]DAILY TECHNICAL OUTLOOK ON EUR/USD[/B]
[B]Update time : September 14, 2007 00:05 GMT[/B]
EUR/USD - 1.3865...Although the euro rose to another new record high yesterday at 1.3930, the single currency retreated from there on profit taking and also dollar strength in the U.S. session due to a rise in U.S. stock markets. The cable selloff inAustralia this morning (due to the BBC report regarding U.K. lender Northern Rock's application for emergency funding) also weighed on price.
Today, the euro's retreat from 1.3930 suggests that the recent upmove has possibly formed a temporary top (hourly macd is about to cross below the zero line) and consolidation with a mild downside bias is seen for correction to 1.3825/28 (minor support and 38.2% retracement of 1.3663-1.3930), below would extend towards previous support at 1.3778 but as hourly oscillators would be in oversold territory on such a move, 1.3720 (previous resistance) should remain intact. In view of this near term downside risk, we have exited our daily long position and readers should keep an eye out for any special daily updates.
On the upside, above 1.3915 would signal that the uptrend has once again resumed for a re-test of 1.3930 and then towards 1.3971 (61.8% projection of 1.2865-1.3853 from 1.3360), however, the 'psychological' 1.4000 level should hold on 1st testing...
