Sunday 7 November 2010

Forex: EUR/USD recovery constrained below 1.4120 (Barcelona) - Euro rally topped yesterday at 1.4280, and the pair has given away more than 200 pips on Friday to hit session low at 1.4030 after upbeat US employment data, and recovery attempts remain capped below 1.4120 intraday resistance so far.

On the upside, immediate resistance lies at the mentioned 1.4120, and above here, 1.4180 (previous lows), and above here and 1.4245 (session high). On the downside, support levels lie at 1.4030 (session low), and bellow here, 1.3990/00 (Nov 3 lows) and 1.39510 (Oct 29 high).

Technical indicators show the pair exhausted to the downside, according to Valeria Bednarik, technical analyst at, suggesting further recovery: "Technically, hourly indicators look exhausted to the downside, suggesting some further recovery yet to be confirmed once the pair overcomes 1.4120 immediate resistance zone."

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