Euro reaches record low volatility

Daily Currency report for Monday October 02 2006

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This Week's Economic Calendar
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Date ET Release For Actual Briefing.com Consensus Prior Revised From
Oct 02 10:00 Construction Spending Aug -0.4% -0.3% -1.2
Oct 02 10:00 ISM Index Sep 54.0 53.5 54.5
Oct 03 00:00 Auto Sales Sep 5.4M 5.5M 5.3M
Oct 03 00:00 Truck Sales Sep 7.2M 7.1M 7.1M
Oct 04 10:00 Factory Orders Aug 0.0% 0.0% -0.6%
Oct 04 10:00 ISM Services Sep 56.0 56.0 57.0
Oct 04 10:30 Crude Inventories 09/29 NA NA -109K
Oct 05 08:30 Initial Claims 09/30 315K 315K 316K
Oct 06 08:30 Average Workweek Sep 33.8 33.8 33.8
Oct 06 08:30 Hourly Earnings Sep 0.3% 0.3% 0.1%
Oct 06 08:30 Nonfarm Payrolls Sep 115K 120K 128K
Oct 06 08:30 Unemployment Rate Sep 4.7% 4.7% 4.7%
Oct 06 15:00 Consumer Credit Aug $10.0B $5.0B $5.5B

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EUR/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.2615

S/R levels: 1.2620 - 1.2640

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

Medium term: The lowest volatility on record and no breakout means no change. Euro remains essentially range-bound between 1.2600 and 1.3000 and trending action is limited.

Today: A small dip to 1.2640 on Friday was soon reversed with a rebound back to 1.2700. there is very little to say about the single currency, except that we should hold above 1.2600 and eventually make a recovery back to 1.2900. Until then, expect more dreary and boring trading. A break below 1.2600 postpones all this and may lead to a clear out down to 1.2450.

EUR/USD Hourly chart:

EUR/USD Weekly chart: