EUR/USD forex technical analysis round-up: Oct. 5

ForexNewsNow | Published on October 5, 2010 at 1:00 pm

EUR USD analysis - The EU flagNEW YORK (Forex News Now) – As of around 4:45 P.M. GMT on Tuesday, the euro was consolidating gains versus the dollar, after surging to an 8-month high in European afternoon currency market trading.

This is what the analysts say about the heavily traded currency pair in the near-term:

FXstreet notes that the euro’s strong bounce versus the dollar from the daily ascendant trend line coming from 1.2644 has further confirmed the strength of the single currency.

In the site’s EUR USD analysis, the 4-hour chart “remains strongly bullish supporting the bias, with 1.3880 as [a] probable bullish target for the upcoming sessions.”

According to Actionforex, intraday bias is back on the upside, and a further rise should be seen “towards a 100% projection of 1.1875 to 1.3330 from 1.2587 at 1.4024, which is close to 1.4 psychological level.”

But the realtime forex news site warns that in light of the mildly bearish divergence condition in 4 hours MACD, a break below support at 1.3636 will indicate that “a short term top is formed and bring deeper correction first.”

Meanwhile, in a useful – albeit earlier – report for technical analysis trading, Forexcyle points out that, “EUR/USD is facing the trend line support, a clear break below the trend line will indicate that a cycle top has been formed at 1.3792, then deeper decline could be seen to 1.3500 or even lower.”

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