DAILY TECHNICAL OUTLOOK ON EUR/USD by AceTrader

[acetraderfx]

Updating time : 17/07/2008 00:25 GMT

EUR/USD - 1.5826... Despite intra-day rebound to 1.5949 in early European trading y'day, the single currency fell again in U.S. session to 1.5800 on the back of the 276-point rally in DJI (speculation of rate hikes by the Fed later this year n a retreat in oil prices boosted dlr across the board) n the breach of 1.5865 sup signals recent upmove has indeed formed a temporary top at 1.6040 (record high) earlier this week (hourly macd has crossed below the zero line).

Although euro's decline fm 1.6040 is retracing recent upmove n marginal
weakness below o/n NY low at 1.5800 is envisaged, anticipated near term o/sold readings on hourly oscillators shud prevent steep fall below 1.5752/54 (38.2% r of 1.5285-1.6040 n prev. res) n yield rebound later today or tom. Looking ahead, a daily close below 1.5754 wud bring a stronger correction twds 1.5692 sup n 1.5663 (50% r of 1.5285-1.6040) but 1.5611 (July 7) shud limit downside.

Abv 1.5865/75 (prev. sup n 50% r of 1.5949-1.5800) wud signal pullback is possibly over but only a breach of 1.5949 (y'day's high) wud indicate aforesaid correction fm 1.6040 top has ended, however, reckon this res shud hold fm here...

AceTrader - Forex - Real-time FX Forecasts, Commentaries and Trading Signals