Daily Technical Analysis and Recommendations

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Daily Technical Analysis and Recommendations from Forexial FX - 09-01-2006

EUR/USD

Technical Analysis: The Euro reached the resistance point at 1.2170 in the last day of trading last week where it finished the first week of the year rising more than 350 points. The Euro passed important points in its way up taking advantage of the gains from previous sessions and holding on the advances against the Dollar bulls. Many investors cautiously stayed away from the Dollar which affected the main stream direction and tempted other investors to close their positions at any price thinking that the Euro will not go back to the level of 1.1900 for a while. It is expected for the Euro to continue rising to at least towards the fibo 61.8% (from 1.2585 to 1.1640) at 1.2225 but we have to take in consideration that there should be a correction towards the support point at 1.2085 where we think it is a good level to buy from if no surprises comes up especially from the two Fed's Presidents which will speak later today and the Dollar might gain a little. Also, we should not forget that the Euro will be ready to take an advantage of any misshapes of the Dollar to rise even further to new highs of the new year which today it will be affected by the release of the E-12 PMI indicator that is expected to come out better than the previous reading. Be very careful in trading this week as important economic indicators and reports due to be released.


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