The descending momentum for the Euro/Dollar continues to be valid. Negative news about the U.S. economy leads to continuing decline of stock indexes. As a result, the Dollar strengthened against the other currencies in its basket. After 3 unsuccessful attempts to break above the 1.3060 level last week, today the pair tested levels around 1.2930. Traders' moods are in favor of U.S. currency, which can lead to test the lower limit of the channel at levels around 1.2863. This would correspond to levels of 87.5-88 points (levels of resistance) for the Dollar index. Braver forecast would be for tests at the bottom from October 1.2400. Across 1.2685 passes a key trend line, joining previous bottoms. The likelihood of it to hold and launch a movement upward for the Euro is not small. Currently, our model remains in favor of the Dollar. This week will be announced the quarterly reports of major U.S. corporations. Possible stabilization of the main indices would lead to increased interest in the European currency and corrective movements.
Technical resistance levels: 1.3070 1. 3165 1.3300
Technical support levels: 1.2920 1.2770 1.2650
Trading range: 1.2950 - 1.2885
Sell at 1.2935 SL 1.2965 TP 1.2895
On Friday we made +39 pips profit on EUR/USD from the following signal:
5:49 GMT Buy EUR/USD at 1.2937 SL 1.2911 TP 1.2987 exited at 7:11 GMT
Total on Friday +146, as shown at www.zifx.com/performance.php