Mon, 18 Oct 2010 00:57:00 +0200

Forex: EUR/USD likely to press 1.4500 – Capital Management

FXstreet.com (Barcelona) - EUR/USD is grinding slowly lower during the first hours of Asian trade on Monday. Current price: 1.3955, 15 pips or 0.10% below its previous close.

On an exclusive interview to Reuters Insider, Don Haines from Capital Management discussed EUR/USD big picture: “The pair has already met the ideal 1.4045 equality target, and while there is room for a minor downside correction we doubt the rally is completed.

He added: “Holds are expected between 1.3775 and 1.3635 range, and then there is go for further pushes to the upside towards down channel resistance at about 1.4500 figure. A recovery of this magnitude would allow for at least a correction to 1.3635”.

“Only a loss of the key 1.3335 pivot point would confirm the end of the 3-wave rally from 1.1875 and allow for the next leg of the downside correction. It is also important to know that every move in the EUR/USD weekly chart for the last 2 ½ years is a 3-wave sequence”.

Technical Analysis (2010-10-17 22:45 GMT)
EUR/USD 1.3967/1.3971 - O: 1.3961 H: 1.3964 L: 1.3954 C: 1.3963
Trend	R3: 1.4040
	R2: 1.4005
	R1: 1.3970
	S1: 1.3896
	S2: 1.3931
	S3: 1.3966