FX Forecast - 12 Nov 08

EUR/USD

EUR has been testing the patience of traders looking to long the EUR this week. EUR broke below the 1.2650 support (which I identified as a recent support), and it fell to a low of 1.2482 and currently trades at 1.2522 (as I type this blog). Would still be holding my view of longing the EUR as long as the support at 1.2329 holds. Initial targets for long trades are 1.3440 regions and 1.4400 regions.

USD/JPY

JPY has started to turn down from the top of 100.54. It is currently trading at 96.20 (as I type this). I predict that this drop will bring the JPY to 94.20 regions before the JPY will turn upwards again.