An hourly chart shows the index continuing to straddle the 50% Fibonacci retracement taken from the August 1st advance at 9730. Interim support rests at 9700 backed by the 61.8% retracement at 9633 and 9600. Topside resistance remains at 9745 backed by 98 | Learn Forex | GoLearnForex.com

An hourly chart shows the index continuing to straddle the 50% Fibonacci retracement taken from the August 1st advance at 9730. Interim support rests at 9700 backed by the 61.8% retracement at 9633 and 9600. Topside resistance remains at 9745 backed by 98

Written by article default Tuesday, 08 November 2011 08:01

EUR/USD: The market finally looks like it has carved out a fresh lower top by 1.4250 ahead of the next major downside extension. From here, we look for a daily close back below 1.3605 to confirm bias and accelerate declines towards critical support at 1.3145. Below 1.3145 will then open the next major drop towards our longer-term objective into the lower 1.2000’s. Any intraday rallies should now be very well capped below 1.3900 on a daily close basis, while only back above 1.4250 would negate outlook and give reason for pause.

--- Written by Joel Kruger, Technical Currency Strategist

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