Weekly Technical Outlook On Eur/usd By Acetrader - Forex Forum

Updating time : 06/10/2008 00:33 GMT

EUR/USD - 1.3630 ... Euro's gap-down opening due to renewed global credit
crunch worries pressured price to 1.3610 in New Zealand (Dow Jones futures fell
by 144 points in electronic trading), suggesting recent decline fm 1.6040 top
wud resume after consolidation n further subsequent weakness is envisaged.

Looking at the daily chart, euro's MT fall fm 1.6040 to retrace the LT
uptrend fm 0.8228 remains in progress n further weakness to 1.3533 (62% proj. of
1.6040-1.3882 fm 1.4867) n then 1.3184 wud be seen, however, loss of downward
momentum shud limit downside to 1.3056 (38% r of 0.8228-1.6040) n risk has
increased for a correction to take place later this month.

Today, although intra-day cross-inspired selloff is likely to extend
weakness to 1.3533, low readings on hourly oscillators shud prevent steep fall n
a much-needed minor correction is likely to occur soon. On the upside, only a
breach of 1.3702/09 wud signal a temp. low is made n bring retracement to 1.3763
(50% r of Friday's selloff fm 1.3915) n possibly twds 1.3798 (62% r) b4 prospect
of another decline later this week...

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