NEWS / Foreign Debt

Euro holding above 1st support, but allow for another dip

Daily Currency report for Tuesday September 26 2006

This is only a guide. Please refer to our specific entry signals for exact entries and stops.

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This Week's Economic Calendar
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Date ET Release For Actual Briefing.com Consensus Prior Revised From
Sep 25 10:00 Existing Home Sales Aug 6.25M 6.25M 6.33M
Sep 26 10:00 Consumer Confidence Sep 105.0 102.5 99.6
Sep 27 08:30 Durable Orders Aug 1.5% 0.8% -2.5%
Sep 27 10:00 New Home Sales Aug 1020K 1050K 1072K
Sep 27 10:30 Crude Inventories 09/22 NA NA -2848K
Sep 28 08:30 Chain Deflator-Final Q2 3.3% 3.3% 3.3%
Sep 28 08:30 GDP-Final Q2 2.9% 2.9% 2.9%
Sep 28 08:30 Initial Claims 09/23 315K NA 318K
Sep 28 10:00 Help-Wanted Index Aug 32 32 32
Sep 29 08:30 Personal Income Aug 0.4% 0.3% 0.5%
Sep 29 08:30 Personal Spending Aug 0.2% 0.2% 0.8%
Sep 29 09:50 Mich Sentiment-Rev. Sep 84.4 85.0 84.4
Sep 29 10:00 Chicago PMI Sep 56.5 57.0 57.1

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EUR/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.2615

S/R levels: 1.2700 - 1.2750, 1.2620 - 1.2670

Strategy: Whilst above the weekly trend reversal level, buy dips to S/R levels after an entry signal.

Medium term : Euro remains essentially range-bound between 1.2600 and 1.3000 and trending action is limited. We have managed a weekly close above the medium term SMA, which means we should head back up towards the top of the range, as long as 1.2600 holds.

Today: The euro dipped down towards support later yesterday and has held up above 1.2730. If this level holds, we should be able to rally back towards 1.2820 and then 1.2900. Before that, allow for more activity between 1.2730 and 1.2800, always allowing for the chance of another leg down to 1.2680/1.2700 first.

EUR/USD Hourly chart:



EUR/USD Weekly chart: