EUR/USD Mid-Session Analysis for October 2, 2012

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The EUR/USD is trading better at the mid-session but trading has been range bound on low volume. Traders are waiting for Spain to make a formal request for financial aid from the European Central Bank. The announcement appears to be imminent but traders appear to be shy about taking a position ahead of the news to avoid disappointment.

Daily EUR/USD Chart

Daily EUR/USD Chart

Technically there was little follow-through to the upside following Monday’s closing price reversal bottom. The daily chart indicates that the main trend is down and that a move through 1.2959 will turn the main trend up.

The first resistance price is a downtrending Gann angle at 1.2972. This is followed by a retracement zone created by the 1.3172 to 1.2803 range. This zone is at 1.2987 to 1.3031. This is the first objective of the reversal bottom, however, if bullish news hits the market then look for the Euro to accelerate through this zone.

On the downside, solid support comes in at 1.2824, 1.2803 and 1.2741. 

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About: FX Empire Analyst - James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.

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