Thread: WEEKLY TECHNICAL OUTLOOK ON EUR/USD by AceTrader

Updating time : 27/10/2008 00:26 GMT

EUR/USD - 1.2600... Euro tumbled n reached its lowest in over 2 years at
1.2496 Friday on active cross selling esp. vs yen as global credit market crisis
continued to cast a bearish shadow on European ccy n led to more unwinding of
long positions funded by borrowing against low-yielders such as the yen.

Looking at the daily chart, euro's downtrend fm this year's record high
at 1.6040 may extend to 1.2302 (50% r of LT intermediate rise fm 0.8563-1.6040)
n then 1.2134/67 (50% r of entire upmove fm 2000 low at 0.8228-1.6040 n equality
proj. of 1.4867-1.3258 fm 1.3769), however, reckon 1.2000 lvl wud limit downside
(daily oscillators are in o/sold territoy) n chart sup at 1.1640 (Nov '05) shud
hold, yield much-needed correction possibly next month.

On the upside, abv 1.2758 wud be the 1st signal a temporary low is made
but break of 1.3007/18 (Friday's high in Australia n 50% r of 1.3540-1.2496) is
needed to indicate correction of recent decline is under way n further headway
to 1.3133/40 (50% r of 1.3769-1.2496 n minor res) wud follow but reckon 1.3258
(previous sup on daily chart) shud hold...

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