Monday, October 31, 2011

eurusd Oct 31st end of day analysis

  • the pair went erased last fiday bull and went below last friday low;
  • next target 1.3675 area;

The pair started the day @ 1.4136 and was driven in a single  direction down. After some great and expected support around 1.4000 the pair followed down to 1.3827 to trade now around 1.3850.
It is clear that the bulls failed and the bears will now get some support from the closing long posiitons.
Next target should be 1.3675 which is the mid bollinger band on the daily chart.
The Asia session should be determined from the support of the dollar...which may also confirm the bear movement of eurusd; If 1.3675 will be triggered we may see a retracement of the pair to 1.3400;
In the meantime a headline says that greek deficit expanded, that should clearly support the eurusd bear;
Tomorrow we have the release of the ISM Manufacturing PMI, which is expected to be higher than last release: this should support the bear.
In case You would like to go long, don't forget to fix your stop loss @ 1.3675.
I will short now with a stopo loss @ 1.4000 and a target to 1.3400
Happy trading

 

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