by ForexNewsNow Team on October 12th, 2010

EUR/USD forex technical analysis round-up: Oct. 12

EUR USD analysis - The EU flagNEW YORK (Forex News Now) – As of around 7:35 A.M. GMT on Tuesday, the euro was extending its recent decline against the dollar into a second day during early European currency market trading.

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

FXstreet said EUR/USD was having a “solid down day,” staying off its long-term target levels (61.8 percent retracement).

The realtime forex news site noted that, “The daily chart is yet to confirm that the bias is now to the downside.”

Forexcyle, for its part, said a break below 1.3834 – which happened soon after the post – would “confirm the cycle top” and indicate that lengthier consolidation of uptrend is underway, in which case a deeper decline towards 1.3637 could be seen.

According to the site’s EUR USD analysis, “Resistance is at 1.4029, only break above this level could trigger another rise to 1.4200 area.”

Meanwhile, in a report geared towards technical analysis trading, Bloomberg quoted Ueda Harlow Ltd as saying that the EUR/USD may retreat to 1.35, since a technical indicator suggests its 11 percent gain over the past month has been too rapid.

“Given the euro has gained at a fast pace and reached $1.40, there will be some selling,” said Toshiya Yamauchi, a senior currency analyst in Tokyo at Ueda Harlow, according to Bloomberg. “The euro may fall to about $1.35.”

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