EUR/USD (daily chart) as of November 8, 2012 has furthered its descent from the major 1.3000 psychological level, the 200-day moving average, and the key 1.2800 prior support level, after having broken down below a 3-month bullish trend line in late October. This occurs within the context of a longer-term bearish trend that has been in place since the May 2011 1.4935 high. The recent bearish stance that has been seen since mid-October has a potential short-term support objective around the 1.2600 level, especially after having broken down below the important 1.2800 level and the 200-day moving average. This 1.2600 level also coincides with the 50% Fibonacci retracement of the bullish correction from the July 1.2040 low to the September 1.3170 high. Further to the downside, on any breakdown below 1.2600, another major support level potentially resides around the 1.2300 price region.
James Chen, CMT
Chief Technical Strategist
Forex trading involves a substantial risk of loss and is not suitable for all investors. FX Solutions LLC (“FXS”) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice. Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein. FXS does not endorse nor is it responsible for any third-party posts related to this material.
For more forex information, go to www.fxsol.com