Euro-Dollar Analysis,October 3rd 2012 (English Language)

Good Morning,

hereunder the video-analysis on the Euro-Dollar for today:

The 1.2976 level indicated yesterday has been violated on the upside. This puts an end to the sequence of measured moves on the downside we have been following in the last 3 weeks on the daily chart. We also accept a suspension, at least temporary, of the correction move on the downside.

While I still believe price will need to move downwards to the 1.2630 area where huge interest from long participation should present, I acknowledge price found support in the 1.2900 area where programs had a corresponding long setup with a first target in the 1.3015-20 area.

In the last 5 days Euro has moved laterally and a violation of the 1.2875 on the downside would highlight and identify a wedge at lows in the daily chart. If we get to those conditions as soon as (and if) the 20-day SMA turns down, price could follow turning down as well and continue the movement towards 1.2630. Indeed, the Dollar did not resume its move lower just yet adding to this scenario.

Tomorrow the BCE meeting will take place with a probably quite monring and a very volatile afternoon.

Have a great day.

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Filed under English language, Euro FX analysis and trade setups videos

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