NEWS / Indicators

Euro steady ahead of FOMC

Daily Currency report for Wednesday October 25 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
Oct 25 10:00 Existing Home Sales Sep 6.35M 6.25M 6.30M
Oct 25 10:30 Crude Inventories 10/20 NA NA 5020K
Oct 25 14:15 FOMC policy statement
Oct 26 08:30 Durable Orders Sep 4.5% 2.3% 0.0%
Oct 26 08:30 Initial Claims 10/21 310K 308K 299K
Oct 26 10:00 Help-Wanted Index Sep 31 31 31
Oct 26 10:00 New Home Sales Sep 1030K 1050K 1050K
Oct 27 08:30 GDP-Adv. Q3 2.0% 2.1% 2.6%
Oct 27 08:30 Chain Deflator-Adv. Q3 2.8% 2.9% 3.3%
Oct 27 09:50 Mich Sentiment-Rev. Oct 92.3 92.5 92.3

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EUR/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.2480

Support levels: 1.2580-1.2540

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

Medium term: The Euro has dropped below immediate support at 1.2670, but remains in the broader 1.2450 - 1.2950 range which has dominated since June. This means range trading should continue until the Euro breaks out one way or the other.

Today: A bit like watching paint dry as the euro traded within a 50 pip range yesterday and managed to hold above 1.2500. Our view remains unchanged, with support at 1.2520 hopefully holding again today and probably a surge higher later in the NY session. First target for the next leg upwards is 1.2700 (10 week MA and Fibonacci retracement level) and then 1.2800. Only below the weekly reversal level and major medium term support at 1.2480 will force a review.

EUR/USD Hourly chart:



EUR/USD Weekly chart: