Tuesday December 2, 2008

EURO

The downside wave is still undergoing for the euro against the dollar that prevailed from yesterday and as we can see the pair is trading above the 76.4% correction at 1.2575 and positive divergence on the RSI is seen which shows the upside move is approaching, meanwhile Stochastic is reflecting the need for further downside move to gather momentum; the pair's movement might be biased to the downside temporarily as we expect an upside move as far as 1.2575 remains intact while further support is seen at 1.2530.
The trading range is among the key resistance level at 1.2840 and the key support level at 1.2370.
The general trend is to the downside as far as 1.5080 remains intact; targets are set at 1.2340 and 1.2225.

Support 1.2575 1.2540 1.2530 1.2500 1.2450
Resistance 1.2635 1.2645 1.2685 1.2750 1.2790
Recommendation Buy euro cautiously above 1.2580 with targets at 1.2735, stop loss with hourly closing below 1.2500

GBP-USD Market should not go lower than 1.4636. After this move down it should go up to 1.4847 - 1.5034 area.
USD-JPY Market should meet resistance at 93.94. We expect then an extended move down to 92.51 -90.94 area.
USD-CHF While above 1.2039 - 1.2 zone a corrective upmove could test 1.2106 or 1.2134. After which it should resume its downtrend.