Technical analysis on EU,GU and majors

[bhanu545]

Market Overview
Yesterday in early Asian session we could observe downward movement of the EUR/USD pair to the 1.3100 level (200EMA Support). European session continued in bullish mood and the price reached a low around 1.3025, in New York session we could observe slight upward movement and price filling opening gap at 1.3138.Today in Asian session this major tests again 200EMA where this pair can find big support and push back to opening price, we can expect a test around 1.3160 level before we see EURO/DOLLAR above 1.3200

Support and Resistance levels
(S3)1.2986 (S2)1.3029 (S1)1.3056 (PP)1.3100 (R1)1.3143 (R2)1.3170 (R3)1.3214

Important News
(EUR)French Trade Balance
(EUR)German Industrial Production m/m
(USD)Fed Chairman Bernanke Testifies
(USD)IBD/TIPP Economic Optimism
(USD)Consumer Credit m/m

EUR/USD Elliott Wave Analysis

Euro-Dollar Pair finishes 1 wave of bigger iii wave at 1.3140 level, wave 2 is over at 1.3089 and we are currently in 3 wave.Concerning our wave rules and assuming that wave 3 will finish at 161.8% of wave 1 we can project our potential targets level with Fibonacci extensions(1.3026-1.3140-1.3089) to 1.3205 level(100% of wave 1) and 1.3273(161.8% of wave 1)we can use end of wave 2 for our stop loss.

Trading Forecast
Proceeding from Elliott Wave Rules the trend is expected to begin the upward movement to go higher today. That is why LONG position at levels 1.3150 with Stop Loss at 1.3090, Take Profit 1 at 1.3205 and Take Profit 2 at 1.3273 are recommended

Performed by Nicola Delic, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the intermediate resistance of its medium term bullish channel in 1.5930 suggesting a decline. However a break of these levels would allow it to reach the upper limit of its channel to 1.6000.

RSI provides sellers signals and approaching the overbuy zone supporting the assumptions of a decline. Bollinger bands are much discarded to a result of the strong increase of these days. Stabilization is expected in the short term.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.5930 with a 1st objective of 1.5980, then 1.6000. A break in 1.5910 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bullish channel in 1.3300 and seems to initiate a decline. However a break of these levels would free up significant potential and initiate a bullish trend more violent.

RSI provides buyers signals and approaching to the overbuy zone supporting the assumptions of a decline. Bollinger bands are stabilized showing a more regular volatility.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.3300 with a 1st objective of 1.3360, then 1.3390. A break in 1.3280 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the lower limit of its medium term bullish channel in 1.5800 suggesting a rebound. However a break of these levels would free a large potential and entail a new trend.

RSI provide buyers signals but approach to the overbuy zone suggesting a decline. Bollinger bands are much discarded to a result of the strong increase of these days. Stabilization is expected in the short term.

According to previous events, the market indicates a bullish opportunity on the levels of 1.5800 with a 1st objective of 1.5860, then 1.5890. A break in 1.5780 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bullish channel in 1.3300 and seems to initiate a decline. However a break of these levels would free up significant potential and initiate a bullish trend more violent.

RSI provide buyers signals but approach to the overbuy zone suggesting a decline. Bollinger bands are much discarded to a result of the strong increase of these days. Stabilization is expected in the short term.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.3300 with a 1st objective of 1.3360, then 1.3420. A break in 1.3280 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the intermediate support of its medium term bullish channel in 1.5780 suggesting a rebound. However a break of these levels would entail a return to the lower limit of this one to 1.5740.

RSI provide buyers signals suggesting a rebound in the short term. Bollinger bands are stabilized showing a more regular volatility.

According to previous events, the market indicates a bullish opportunity on the levels of 1.5780 with a 1st objective of 1.5850, then 1.5880. A break in 1.5760 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the upper limit of its medium term bullish channel in 1.3320 and seems to initiate a decline. However a break of these levels would free up significant potential and initiate a bullish trend more violent.

RSI provide buyers signals supporting the assumptions of a break of its resistance. Bollinger bands are much discarded to a result of the strong increase of these days. Stabilization is expected in the short term.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.3320 with a 1st objective of 1.3380, then 1.3400. A break in 1.3300 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the intermediate resistance of its medium term bullish channel in 1.5800 suggesting a decline. However a break of these levels would allow it to reach the upper limit of its channel to 1.5960.

RSI provide buyers signals but approaching to the overbuy zone suggesting a decline. Bollinger bands are much discarded to a result of the strong increase of these days. Stabilization is expected in the short term.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.5800 with a 1st objective of 1.5860, then 1.5880. A break in 1.5780 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the intermediate resistance of its medium term bullish channel in 1.3280 suggesting a decline. However a break of these levels would allow it to reach the upper limit of its channel to 1.3340.

RSI don't give clear signals but approaching to the overbuy zone suggesting a decline. Bollinger bands are stabilized showing a more regular volatility.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.3280 with a 1st objective of 1.3340, then 1.3360. A break in 1.3260 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

[bhanu545]

The spot rate is currently testing the lower limit of its medium term bearish channel in 1.5680 suggesting a rebound. However a break of these levels would free a large potential and entail a bearish channel more violent.

RSI provides buyers with signals suggesting a rebound in the short term. Bollinger bands are stabilized showing a more regular volatility.

According to previous events, the market indicates a bullish opportunity on the levels of 1.5680 with a 1st objective of 1.5750, then 1.5780. A break in 1.5660 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012