Resistance: 1,3210-30/ 1,3270-75/ 1,3330-35/ 1,3380/ 1,3430-40/ 1,3500/ 1,3550...
Support : 1,3135/ 1,3085-95/ 1,3050/ 1,3010/ 1,2965-70/ 1,2900/ 1,2840-50...
Comment: Euro formed new lows on Wednesday, as the early reaction remain within the ranges we had set at 1,3310-30 area, and bears gained momentum. Our basic target was set at 1,3100 area, which is an important support in the hourly chart, and a reaction from these levels would be a positive indication, regarding the downtrend reversal.
We should remember that today, we have the interest rate announcement from ECB and Trichet's speech afterwards, is likely to cause high volatility to the market. The investors are already expecting a 50 point cut . A bigger cut is likely to cause high volatility also.
First important resistance is found today at 1,3210-30 and a possible break would give the first confirmation regarding the trend reversal, and could lead us to 1,3280 and 1,3330-40 area, which is an important resistance and reversal range. Next targets are found at 1,3450-70.
If the first resistance is not breached and yesterday's move is repeated, it would indicate thet bears still dominate. The area of 1,3080-00 should be tested again and a clear break would bring our next targets at 1,2830-50 area back in the game..
High volatility is expected today, so we will not suggest short term positions. Buy orders at 1,3080-3100 area, could have stops set below 1,3050.
Buy orders may be tried at a possible upward break of 1,3230, with target at 1,3310-30.