Forexpros Daily Analysis Oct 12, 2009
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The Euro stopped at the resistance established in Friday's report 1.4772 with amazing accuracy, a stop which was a signal that we are heading to areas below 1.47. And now, there is a resistance that combines the rising trendline drawn from 1.4566, and the falling trendline drawn from 1.4816, and is currently at 1.4725, if price stay below it, we are heading south. The probability of more downside grows with a break of the nearby support 1.4693. Such a break would signal more of the drop, to test one or some of the important support levels in the 1.46 & 1.45 areas such as 1.4645, 1.4613, 1.4575, down to 1.4509. The most important resistance is short-term is of course 1.4725. If broken, the Euro will be able to reach areas above 1.48, first of which is 1.4824, then new highs above the tops of September 22nd & 23rd, the most attractive of which is 1.4901.
• 1.4693: short-term support.
• 1.4645: Previous intraday resistance.
• 1.4574: Previous intraday support.
• 1.4725: an area combining the rising trendline from 1.4566, and the falling trendline from 1.4816.
• 1.4761: previous daily high.
• 1.4826: previous daily high.
The Dollar-Yen is testing the limit of the downtrend, which is represented by the falling trendline from August 9th top, and if it is broken, then the Dollar would be invited to show how deep its real strength is over a series of resistance areas starting at 90.67 and reaches 91.63. The resistance that is attached to this line is 90.29, and if broken, then the line is broken, and the next stop would be 90.67 which is an important stop on the way to the most important stop in these areas 91.63. Short-term support is at 89.32, and if broken the direction would be down to test the important support 88.68, which must hold to prevent another attempt to test 87.97 which survived last week's attempt for a break.
• 89.32: short-term support.
• 88.68: support area that supported the price twice this month.
• 87.97: Jan 23rd low.
• 90.29: the falling trendline from Aug 9th top.
• 90.67: previous support.
• 91.12: previous support & resistance area.
Forex trading analysis by Forexpros - Written by Munther T. Marji
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