EUR/USD Classical Technical Report 09.30
EUR/USD Daily: The EUR/USD failed multiple attempts at a breach back above the 100% Fibonacci extension taken from the June 8th and August 29th crests at 1.36660. A downward sloping RSI suggests further downside moves for the euro, with a move into oversold territory providing further confirmation of our bias. With risk sentiment remaining on the defensive the euro is likely to remain under pressure with crucial interim support holding at 1.3420.
EUR/USD Intra-day: The pair continues to consolidate within a wedge formation dating back to September 21st. A break below the short term 61.8% Fibonacci extension taken from the September 21st and 28th crests at the 1.3420 level exposes interim support targets at 1.3360 and 1.3280. Relative strength suggests the pair may be poised for a short-term relief rally before pushing lower, with topside resistance eyed at the 50% extension at 1.3475. Subsequent ceilings are seen at the 1.35-figure and 1.3525. Significant resistance does not come into focus until 1.3660.
Written by Michael Boutros, Currency Analyst for DailyFX.com
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