Forex: EUR/USD: Recent decline responds to a Dollar corrective reaction - Mizuho

 @ibtimes
on December 14 2009 6:07 AM

FXstreet.com (Barcelona) - Euro retreat from year to date highs at 1.5145 has extended on Monday to 1.4600, the largest decline this year, so far, which, according to Nicole Elliott, technical analyst at Mizuho Corporate bank is a dollar related corrective reaction.

On the short term, the pair will likely find a support area to form an interim base, according to Elliott: It is undoubtedly corrective, here and in a whole raft of other major currencies. Therefore we shall be looking for the daily Ichimoku 'cloud', combined with medium term Fibonacci retracement support, to help form an interim base over the next fortnight, here and in the others too, as this is a USD move.

On the weekly chart, Elliott observes signals pointing up to long positions: On the weekly chart, Elliott observes signals pointing up to long positions: Note that all elements on this weekly chart point to a core long Euro position. Futures volume over the last few weeks has been close to record highs, suggesting many are throwing in the towel before delivery and year-end.

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