EUR/USD: Numerical Analysis for November 1st, 2011.

Forecast

Mourad El Keddani

Use time frame of M15 to determine the lower and the higher price of yesterday, because it's more precise.

Friday's historic (28^th of October 2011).

Open : 1.3904
High : 1.4246
Low : 1.3864
Close: 1.4192
 
The market will indicate a bearish opportunity on level of: (Low + (Function / 100)) = 1.3917 (-Spread).
Function = (High - (High - Low)) * 38%.
Monday's historic (31^st of October 2011).
Open : 1.4170
High : 1.4170
Low : 1.3829
Close: 1.3854
Pivot Point = (High + Low + Close) / 3 = 1.3951.
Then the market will indicate a bullish opportunity on level of 1.3955 (+Spread).

Trading Recommendations:

According to previous events, the price has still been trapped between 1.4200 and 1.3750.

• Buy above 1.3959 (38,2% of Fibonacci retracement levels) with a first target of 1.4050, it might resume to 1.43.
• Below 1.3909 (23.6% of Fibonacci retracement levels) look for further downside with 1.3840 and 1.3735 targets

Technical Levels:

R3:1.4414
R2:1.4292
R1:1.4073
PP:1.3951
S1:1.3732
S2:1.3610
S3:1.3391

Tools of Chart:

• It should be noted that the market was so stable and trend was also so clear (downward).
• Range was: 341 pips (downward).
• The value of 50% Fibonacci retracement levels is: (High + Low) / 2 = 1.4000.
• (The key level to confirm a bullish market).
• Volatility is 477.40 so the market has called for a high volatile

Observation (s):

• Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
• Use historic prices to determine future prices.
• Fibonacci retracement uses to determine accurate psychology level of support and resistance, and playing according to in this kind of period.
• Breakout 2 – A breakout strategy that looks to go long when a currency pair breaks above its 24-hour trading range, short on a break below. Unlike a raw channel breakout strategy,
  http://instaforex.com/forex_analysis/42763/?x=OUE 

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