The pair saw a fourth monthly consecutive decline. During the previous week the FED finished its QE program and BOJ surpriseв markets with its QE program. The US dollar has been dominating against its peers. The pair has downside support at 1.2300 and 1.2270, 200Msma. The pair opened on a bearish note in the brand new month. This is the fourth consecutive month opened on a bearish note. This week the key economic data will be released on Thursday, November 06, 2014. The ECB will release its monetary policy stance.
Weekly forecast for November 03-07
The pair has weekly resistance at 1.2606 and 1.2686 levels. As we recommended earlier the pair favors selling on every rise. Our short-term targets exist at 1.2200 and 1.18 in the long term. The same we have been recommending for the last couple of months. In the H4 chart, we can clearly see the triangle breakdown and closing below it. 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 at 1.2480, 1.2440, 1.2400, 1.2360 and 1.2325 levels. On the other side, the pair has resistance at 1.2583, 35DEMA, above this, 1.2632 and 1.2660 will act as strong resistance levels.
Support: 1.2480 1.2360 1.2325
Resistance: 1.2583 1.2632 1.2660
Trade:
Selling for targets 1.2480, 1.2440, 1.2400, 1.2360 and 1.2325
