Main analysis

Update for: 2011-10-17 - 2011-10-23

Posted on: Sunday, 16 October 2011 16:49


EURUSD: 1.3878

 Short-Term Trend:  sideways

Outlook: Last week I said I favored the short side as I expected further decline as long as the prices were below 1.3520/30. However, the picture changed completely on Monday when EUR managed to firmly break abv the 1.3520 level. It has never looked back since! Now, the assessment of daily chart is quite different. It appears, an A-B-C zig-zag ended from May 2011 top. And the recent strong move higher from early Oct low at 1.3146 is a strong signal that the next bull market for the single currency has begun. This view will be held as prefered as long as the prices stay abv 1.3520 key level. Thus, I am looking for higher prices twd 1.4045 intially and 1.4570 thereafter.
On the downside, only below 1.3520 negates, risks re-test on the 1.3200 level.

Strategy: The long side is favored as long as the prices hold abv 1.3520

Next Update: Sun, 10/23/2011.


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