EUR/USD forex technical analysis round-up: Oct. 8

ForexNewsNow | Published on October 8, 2010 at 1:25 pm

EUR USD analysis - euros and dollarsNEW YORK (Forex News Now) – As of around 5:10 P.M. GMT on Thursday, the euro was paring losses against the dollar after dropping to a 2-day low as risk appetite dried up in early European afternoon currency market trading.

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

FXstreet quoted Valeria Bednarik as saying the euro’s bullish momentum could have found a temporal bottom, thus making the downside still appear quite limited. She adds that if the rally continues, 1.43 is the next strong level to watch for a reversal.

The realtime forex news site also quoted Ian Coleman as saying that the currency pair “looks to have completed an ABC correction at 1400-14060. Next wave is down.”

Forexcyle, meanwhile, noted that support remains at the rising uptrend line on the 4-hour, now at 1.3803, and the uptrend is expected to resume after touching the trend line support.

But in the site’s EUR USD analysis, it notes that “a clear break below the trend line support will indicate that lengthier consolidation of uptrend is underway, then deeper decline to test 1.3637 key support could be seen.”

Meanwhile, in a report geared towards technical analysis trading, Actionforex says a break below support at 1.3636 is necessary to signal short-term topping.

The site adds that, “Otherwise, outlook will remain bullish and recent rally is expected to continue sooner rather than later.”

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