[B]DAILY TECHNICAL OUTLOOK ON EUR/USD
Last Update At [/B]
25 Jan 2013 00:35GMT
Trend Daily Chart
Up
Daily Indicators
Bearish divergences
21 HR EMA
1.3353
55 HR EMA
1.3336
Trend Hourly Chart
Sideways
Hourly Indicators
Rising
13 HR RSI
62
14 HR DMI
+ve
Daily Analysis
‘Choppy’ trading to continue
Resistance
1.3486 - Feb 12’ high
1.3430 - Equality proj. of 1.2876-1.3308 fm 1.2998
1.3404 - Last Mon’s high
Support
1.3264 - Tue’s low
1.3257 - Thur’s low
1.3201 - 50% r of 1.2998-1.3404
EUR/USD - 1.3368 … The euro went through another ‘roller-coaster’ sess- ion y’day as despite initial rebound fm 1.3298 to 1.3347 in Asia, the pair fell briefly to 1.3286 in Europe on weak France PMIs b4 rebounding on better-than- expected eurozone PMIs. Price later rallied to 1.3393 in New York b4 easing.
Despite y’day’s cross-inspired rally fm 1.3286 to 1.3393 (eur/jpy jumped fm 117.58-121.06), breach of last Mon’s 10-month high of 1.3404 is needed to confirm MT uptrend fm 1.2042 has once again resumed n yield further gain to 1.3430 (equality projection of 1.2876-1.3308 fm 1.2998) n then twds prev. daily chart res at 1.3486 (Feb 12’ high), however, ‘bearish divergences’ on the daily oscillators shud prevent strg gain abv latter lvl n yield a correction later. Looking ahead, abv 1.3486 res wud extend said MT uptrend fm 1.2042 to retrace LT intermediate decline fm 1.4940 to 1.3833 (61.8% r) in Q1.
Today, we are cautiously holding a short position for another retreat but position traders shud look to buy on subsequent pullback in anticipation of a resumption of uptrend as 1.3257 (reaction low) is expected to remain intact.
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