The pressure, exerted on the pair on the part of the Bears\' at the Asian session and during the first part of the European one, was completely compensated by positive fundamental data from the USA, which could return the Euro to the level of the 49th figure. The trades closed with a winning edge of the US dollar against the European currency, which amounted hardly to 27 points. The trading volatility as marked at higher level.
The fundamental review:
During the first part of the trading day the European stock market exerted pressure on the single currency, which declined following the gold quotations decrease as well as the banking sector.
It is worth mentioning the Italian trade balance, published yesterday, which showed the deficit at -EUR 0.90 bln. and was not in line with experts forecasts who predicted this index to be at the level of -1.00 bln.
According to the US Labor Department statistics the initial jobless claims for the previous week remained at the same level of 505K and did not show any changes.
The pair got a special support from the Philadelphia Fed index, which grew to 16.70 in October, 2009 versus the analysts predictions of the rising only to 12.50. The leading index, which determines the total economic prosperity, combining 10 leading indicators, including average hourly hours, new orders, consumer expectations, building permits, shares quotations and interest rate spreads, demonstrated the increase by 0.30% contrary to the experts predictions who were waiting for the growth by 0.50%.
The technical picture:
The technical picture continues to work out the figure of “triangle” well. Gradually reducing its liquidity the pair is preparing to break through the upper or lower boundary for resuming the trend movement.
Considering the fact that at the 4-hour graph the pair almost used up its power for further decline, then the breaching of the upper level of our figure is possible, for the continuing of the pair\'s ascendant motion.
Currently, the Bollinger bands are reversing, showing the pair\'s ascendant movement.
MACD indicator is in a cleft stick again and locates near the zero mark.
Today\'s recommendations:
The support levels: 1.4906, 1.4854, 1.4808.
The resistance levels: 1.4949, 1.4987, 1.5050.
Today I recommend to buy the pair at the 1- hour timeframe closing above the level of 1.4935 with the target — T/P 1.4980 and S/L 1.4903.
Sell the pair at 1- hour timeframe closing below the level of 1.4877, with the target — T/P 1.4829 and S/L 1.4904.
Best regards,
Analyst: M. Magdalinin.
