05.11.201401:36 Forex Analysis & Reviews: Forecast and trading recommendations on EUR/USD for November 05, 2014

Long-term review

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EUR/USD

The euro surged to a weekly high at 1.2577 levels ahead of the ECB press conference. The euro took the support at the 80.0 fib level in the weekly chart. Traders eye today's Spanish and Italian services PMIs and retail sales, the major events ahead of Thursday's ECB press conference. This time we are not expecting further easing in the EU. In case if the same thing happens, the euro will recover against USD and JPY. In case of chances of further easing the euro will go down further towards 1.2300 and 1.2270 levels, 200Msma. If the ECB does not deliver further easing in the tomorrow's meeting, on the December 4 meeting there is a chance for further easing. In the daily chart, the pair made a minor base at 1.2480 levels.

Ahead of the ECB press conference, the euro is looking strong against USD and JPY. The EUR/USD pair is trading above the previous swing low of 1.2500 in the daily chart. As of now, today the pair is trading above the previous close, but has not yet crossed the previous high at 1.2577 levels. The pair has resistance between 1.2616 and 1.2670, the 20Dsma level. On the other side, it has support at 1.2480 and 1.2440, below this, panic will be triggered for targets at 1.2300, 1.2270 and 1.2240 levels. In the H4 chart, we can clearly see the triangle breakdown and closing below that. The height of the triangle is 280 pips. As the triangle height from the base, the downside target exists at 1.2325 levels. Until the prices close below the descending trend line in the h4 chart, use every rise to sell for the downside targets. The pair has resistance at 1.2606, 34hrsma, above this, 1.2670 will act as strong resistance levels. On the other hand, the support level exists at 1.2540 and 1.2500 levels.

Support: 1.2540, 1.2500, 1.2440

Resistance: 1.2610, 1.2670, 1.2720

Trade:

Selling below 1.2500, panic will be triggered below 1.2440

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