Currency Technical Report

EUR/USD

Resistance :1,4840-50/ 1,4880/ 1,4910-30/ 1,4960/ 1,5000
Support : 1,4770/ 1,4740/ 1,4700-10/ 1,4675-80/ 1,4650/ 1,4610-20/ 1,4570

Comment : Euro was expected to move to new tops after Monday's daily close and the market's reaction at 1,4620-40 support levels. Important technical resistance emerges at 1,4860-4920 area and a correction is likely to be formed from these levels. However the rise could be resumed after this correction. As we had mentioned in previous analysis, the outlook in the weekly chart and the extensions from the sideways formation since summer, allow a move resumption towards 1,5100-50 or 1,5250-00, where important resistance is found. In the end of today's analysis you can see chart of Dow Jones, DAX 30, crude oil and gold. The high correlation level between EUR/USD and commodities and equities is known. As you can see in these charts, stock indices have higher targets and their rise is likely to be resumed. Gold and crude oil are testing important resistance levels and if they are breached, their price could reach new highs. If the technical outlook is confirmed, EUR/USD will continue its rise and higher targets will be achieved…

First important resistance emerges at 1,4900 area, and a retracement from these levels is possible. However, the trend remains bullish until we see reversal signs or the break of important support levels.

First intraday support emerges at 1,4740-70, which should not be breached in order to see an immediate rise resumption. Next support should be found at 1,4700, but the most important are will be 1,4650 area. A move below Monday's lows (1,4610), could lead to a wider correction or a sideways formation. In that case, all scenarios will be open…

STRATEGY

Fed's interest rate announcement is expected to cause high volatility in the markets and it would be wise to stay out of the market at this time.

During the European session, we could try buy orders at a possible correction towards 1,4770, adding positions at 1,4740, and placing stops below 1,4700. Our target will be at 1,4840-60 or even 1,4900 area.

Sell orders could be tried at 1,4900-30 with stops above 1,4970 and target at 1,4800-20.

The above mentioned strategy refers to orders that we may follow for personal accounts, depending on the market analysis and the potential reach of resistance and support levels. We do not encourage buy or sell orders, as its effective use is based on correct risk management and the ability of position readjustment depending on current conditions

FX Greece