As shown on the daily chart posted below, the EURUSD is in consolidation mode- in medium term - after losing the key support 1.2940 which is served now as resistance!

A clear break with stability above 1.2940 would be a sign of very persistent bullish momentum, and then price action is testing 1.3075/1.3170 levels A.S.A.P!

But in return, a clear break below 1.2815 would delay the bullish move and extend the consolidation toward the key support 1.2685; losing 1.2685 would mean that the bullish momentum in the short-term is lost!!!

Anyway, keep in mind that the daily trend is bullish as long as 1.2550 holds, the recovery is expected to happen somewhere around 1.2815 or 1.2685 , and to completely  get out of consolidation , 1.2550 or 1.3075 should be taken out ?!!!

Here is the economic calendar for the next week (the most important events):

Thursday 04 Oct 2012 at 12:45 GMT

From EURO zone, ECB Monetary Policy , Previous: 0.75%, Forecast: 0.75%, Volatility: Medium, EURUSD Direction: No change/ unknown.

Thursday 04 Oct 2012 at 13:30 GMT

From United States, Jobless Claims, Previous: 359K, Forecast: 369K, Volatility: Medium, EURUSD Direction: Downward.

Friday 05 Oct 2012 at 13:30 GMT

From United States, Employment Situation, Previous: 96K, Forecast: 125K, Volatility: High, EURUSD Direction: Upward.

   

Recommendations : Buying the pair around 1.2685 targeting 1.2820 & 1.2900 , stop loss 1.2600

Best Regards

Haitham653

Views: 327

Comment by Haitham653 on September 30, 2012 at 5:06pm

Conclusion : Last week the pair pulled back from 1.2815 levels , but Its move above 1.2940 was limited since the pair was under strong pressure according to 4 hour chart !!!

Now eyes on 1.2815 , I think this level is weak , and It would be breached by Monday or Tuesday , the next level is 1.2685 , around this level we should see strong pullback 100/ 200 pips at least before the next move , the daily RSI is supporting this view strongly !!!

Best Regards

Haitham653

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