EURUSD Update: Daily and Weekly Charts indicate Bearish patterns. Possible top reached at 1.5063

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EURUSD Update: Daily and Weekly Charts indicate Bearish patterns. Possible top reached at 1.5063

The Euro reached a 14 month high against the US Dollar on the 26th October 2009. This followed the formation of a ‘Bearish Harami’ on the 22nd October on the EURUSD Daily Chart. The pair dropped to 1.4683 within a few days following this evolution. What is interesting is that at the same time, a ‘Bearish Engulfing’ formed for week ending 30th October on the EURUSD Weekly Chart.



The next key support levels for this currency pair lie at the wedge bottom on the Weekly chart which is currently at 1.4683, which is coincidently last week’s low. This point has now been broken and we anticipate further decline should the price of EURUSD pair close  below the 50 day SMA on the Daily chart at 1.4661, which has supported the majority of the rally in 2009. In fact the last time the price of EURUSD closed below the 50 day SMA was on the 27th April 2009.   If this critical support is broken, we anticipate further decline in the medium to longer term. If on the other hand this key support should hold, we should see the pair rally again to new 2009 highs.



Emman Xuereb
RTFX Ltd
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