EUR: mid-term trend reversal or retracement?

Market Leader informed

The common European currency keeps retracing from Friday’s high. It has already reached 1.3800. However, numerous investors stay away from the market while waiting for the Fed Reserve’s speeches, which forces the price movement of EURUSD to be multidirectional. Besides, the accommodation policy sentiments have already been taken into account by the market with the steady growth of early and mid October. The news background is neutral, so a strong price movement is unlikely to take place within the current trading week. The only significant news release that can influence the price today is Durable Goods Orders (US) AT 12.30GMT.

Oct 27th 2010. The Department of Volume Analysis of Masterforex-V Academy defines:
The mid-term trend is bullish
The short-term tendency of EURUSD futures (6E):

From the standpoint of volumes, the 1.3864 level (6700 lots of volume) - the volume of Oct 25th - looks significant. Until there is no settlement above the level the downward tendency holds true. The closest support level is the current cluster at 1.3812 (1500 lots). On breaking through the level the price will prompt a downtrend.



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