Tuesday November 4, 2008 - 14:28:17 GMT
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Forex Trading: EURUSD hanging around moving average resistance
The EURUSD is hanging around the 100 hour moving average after reversing most of yesterday's declines.
Before reversing, the pair extended yesterdays trend during the Tokyo session, but found some profit taking support at the 1.2526 level. The pair marched steadily higher through the early London session, breaking back through the Head and Shoulder neckline from yesterday , the 200 hour moving average (at 1.2734) and has now tested the 100 hour moving average over the last 3 hours (currently at the 1.2832 level). Today there is a minor economic release at 10:00 (Factory Orders) and of course the election. The results of the election will only be anecdotal exit poll and voter turnout speculation so I would not expect any dramatic moves. However, there may be some choppy, volatile moves throughout the day.
For the intraday, I would look for sellers against the 1.2832 level (100 hour moving average). A move above would push the sentiment the other way for a target test of yesterdays high price of 1.2898. Below there should be support against the close from Friday at 1.2746 and the 200 hour moving average currently at 1.2735.
Later on in the week, the ECB is expected to cut rates by 50 basis points which should pressure the EUR. However, following that will be an expected weak US employment number of Friday. The combination should keep markets on edge and non-committed.
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