EURUSD Technical Analysis – Video Update – WC 15th October
- The EURUSD currency pair has found support at the 1.2820 area which is aligned with the 200 period SMA (daily). This comes in the context of the recent uptrend which has then seen a consolidation phase.
- A bullish engulfing candle subsequently formed on Thursday but is located close to the previous resistance comprised of PPZ (Price Pivot Zone) Fibonacci retrace (61.8 %) and likewise close to a potential third touch of a descending trend line.
- Ideally technical traders like to see these bullish engulfing candles at clearly defined swing lows with price running out of bearish momentum . Nonetheless, Friday gave an upside move and took out the bullish engulfing high (confirmation break), coming close to testing the 1.300 EURUSD round number, before seeing profit taking and fresh sellers taking price back to the bullish engulfing highs.
- The latest COT report from the CFTC shows a EUR net short position of 73K versus the previous weeks 50K. This shows large speculators moving back into a larger aggregate EUR short position.
- In related markets. Benchmark U.S. Treasury yields were lower on the weekly basis as were equities as Treasury yields notched their fourth consecutive daily decline. Gold is trading at a two week low after struggling to break above the $1800 level @ $1754. Cable closed the week lower near the 1.6070 level but has pulled back a good deal of the earlier losses after finding support at 1.6000.
- See the attached EURUSD video for further analysis.
EURUSD Analysis – Daily Chart
EURUSD Video Analysis – Week Of 15th October 2012