EURUSD Weekly Outlook (22 Oct - 26 Oct) 2012
EUR/USD weekly technical analysis: Upside Resumes !
Recommendations: Buy positions between 1.2802 -1.2927 with targets @1.3060 &1.3150.
Comment: As long as1.2802 holds with RSI above 40, Upside Resumes, below 1.2802 might extend the consolidation from 1.3171 through 1.2740/700, however ; 1.2960/1.2860 is supposed to contain any bearish correction !
Resistance: 1.3060, 1.3150, 1.3250
Support: 1.2960, 1.2865, 1.2770
EUR/USD medium/long term technical analysis: Consolidation with bullish bias!
In the short / medium picture, Below 1.3070 would suggest that consolidation from 1.3171 is resuming and might extend through 1.2740 levels; however this level is supposed to contain the consolidation from 1.3171, but a clear break below this level with a daily close would threat 1.2500 levels, but in return stability above 1.3070 would target 1.3171, above 1.3171/1.3200 would suggest that recent rise from 1.2042 is resuming and target 1.3485, 50% retracement (1.2042 – 1.4939).
In the bigger picture, fall /consolidation from 1.6035 was resumed by the bearish breakout at 1.3882 – Sept 2008 low – the bearish scenario was protected during 2009 & 2011 by the high of the same month at 1.4866, so in the long term view this is a perfect place - 1.3882/1.4866- for short positions, only a clear break above 1.4866 would suggest that fall /consolidation from 1.6035 is over and target 1.6035!
The downside of 1.6035 was contained by 1.2485 – Aug 2005 high – and 1.1640 – Nov 2005 low - so in the long term view this is a perfect place - 1.1640 /1.2485 - for long positions.
Conclusion: In the short / medium outlook, as long as 1.2485 holds I’m bullish on the EURUSD, technical targets are around 1.3882/1.4866 levels, but the pair needs to surpass 1.3200/1.3485 first, below 1.2485 I’m bearish and looking for 1.1640 !
Comment: my personal view, the consolidation from 1.6035 is supposed to resume between 1.1640-14866 for the next 2 or 3 years but , however I believe the long term trend would resume and extend beyond 1.6035 during the next 5 years..
Best Regards
Haitham
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Comment by Haitham653 on October 22, 2012 at 1:51pm -
EURUSD under pressure as long as trades below 1.3100, eyes on 1.2930 as shown on the 4 hour chart below:
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Comment by Haitham653 on October 22, 2012 at 5:29pm
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Update:
A break below 1.3012 would increase the risk towards 1.2930 level then 1.2840 , alternatively stability above 1.3082 would push towards 1.3139/1.3171 levels.
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Comment by 6cute on October 22, 2012 at 9:58pm -
HI Haitham,pls how do you trade RSI in your daily chart.pls reply.Thank You
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Comment by Haitham653 on October 22, 2012 at 11:24pm
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Hi 6cute
Above 70, the pair is on overbought area, If the pair extended higher, then we have bullish breakout momentum and more gains are expected !!!
Below 30, the pair is on oversold area, If the pair extended lower, then we have bearish breakout momentum and more losses are expected !!!
The neutral zone is between 40 & 60
above 60 (Bullish) suggests a trend continuation , the opposite below 40 !!.
These techniques can be used at any time frame , but overall , it requires experience to trade successfully !!!
Anyway , try it on a demo account first !!!
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Comment by Haitham653 on October 23, 2012 at 6:21am
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Since we're almost in the middle of range ,I prefer observing the market - on intraday basis - around 1.2860 - looking for longs - and around 1.3150 - looking for shorts ....
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Comment by Haitham653 on October 23, 2012 at 6:48am
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As show on the 4 hour chart , the pair still under strong pressure, eyes on 1.2930, but a break below 1.3012 is indeed to test 1.2930, only a 4 hour closing above 1.3082 would challenge 1.3139/1.3171 !!
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Comment by Haitham653 on October 23, 2012 at 11:56am
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As shown on the 4 hour chart below , there's a risk for testing 1.2865 levels, If seen we should witness a strong bounce at least to 1.3000 levels before the next move !!!
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Comment by 6cute on October 23, 2012 at 12:25pm
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thanks Big Bro for your quick reply.In your above post,you if RSI stay above 40 level,we consider buying.......................................or we not suppose to take the trade
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Comment by Haitham653 on October 23, 2012 at 12:50pm
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No RSI hold above 60 in an upward trend suggests a bullish momentum, and below 40 in a downward trend suggests a bearish momentum !
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Comment by 6cute on October 23, 2012 at 5:51pm
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ok......................thanks bro
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