Resistance 3: $1.3300
Resistance 2: $1.3100
Resistance 1: $1.3050
Current price: $1.2851
Support 1: $1.2745
Support 2: $1.2660
Support 3: $1.2530
Comments: The euro may extend its losses against the dollar on speculation the
European Central Bank is in the midst of the most aggressive round of
interest-rate cuts in its 10-year history.ECB will lower its main
refinancing rate by a half-percentage point to 3.25 percent today,
after a similar-sized reduction less than a month ago, and signal
further cuts. The ECB will announce its decision at 12:45 GMT and the
bank's president, Jean-Claude Trichet, will hold a press conference 45
minutes later.
Gains in the dollar may be limited by speculation the U.S. economy lost
jobs for the 10th consecutive month. Nonfarm payrolls probably fall by
200,000 in October, according to forecasts before the report on Nov. 7.
Failure to hold above $1.3000/50 Fibonacci level (61.8% of $1.3299 to
$1.2528) yesterday put the euro under the pressure. Closest support
spotted near Wednesday low $1.2790 and the pare may find the base there
or at $1.2750 before one more test of resent highs. Sustained break
above 21DMA, which is today valued at
$1.3100 will lead to retest of October 30 peak $1.3300 (38.2% of the
$1.4860
decline).Minor support comes at $1.2660 and November 4 low at $1.2530.
The double-day low at $1.2330 area remains the key target.