EUR firmed its positions against the dollar yesterday, because of the fresh money transfer to Greece, and hopes for the better things to happen on Wednesday. My forecast was complete as the pair touched 1.3955 and it was a good price to enter SHORT. At 1.3965 we have the 100% fibo retracement from 1.47 and also the diagonal downside trend line from 1.6000, it's a major trend resistance line. Weekly MA14 passes through 1.3955 (where we have stopped) and positive weekly Ichimoku border is @ 1.4040. On Daily we are inside a thin negative Ichimoku , but it's too early to break it, and i'm not sure if we have the enough power to do it. These all are supporting my theory that a downside movement is going to begin very soon.

Now for support lines - we have first support @ 1.3810, followed by 1.3770 and then 1.3650, below 1.3540, @ 1.3400 watch for reaction from ECB - there will  be any for sure, Merkel has dropped a hint for that. And the reason is that if we loose 1.3400 , EUR fall will be out of control and will go well below 1.30.

After some hesitation around 1650 GOLD will try another jump to 1710, and this time i think will be successful, but let's go to 1680 first and then 1710.

Stay tuned for updates, and feel free to post your comments.

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Comment by Vladimir Mihaylov on October 26, 2011 at 4:37pm

EUR now is not out of control, all that fall was the expected result, from my 2-3 days analysys. 100% fibo level was unbrekable and with no result from EU leaders, everybody avoids risk currencies. Here was the risk averision you've been told one day ago, now everyone buys GOLD and runs for a shelter. If we break 1.3760, expect 100 pips more down. More in tomorrow's analysys.

Comment by MarlonF on October 26, 2011 at 8:07pm
I missed it forecast today mate.. Will wait for an update tomorrow...


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