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Forex Alerts 10/30/2008

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Alert - 16:55 (CET) - Dollar advances againt the Euro, due to the stocks decline



After hitting the intraday high at 1.3292, the EurUsd not only lost 1.3000 but also 1.2900. The pair is now trading at 1.2856, under yesterday's close at 1.2963 and also under 200- Exponential Mobile Averages (EMA).

Given the decline of the Dow Jones Industrials, the appetite for high yielders is also falling. This way, the investores are seeking the safe haven on the Dollar and Yen again.

The supports are at 1.2500 (key), 1.2324 (January 2006 high) and 1.2000 (key). As the resistance at 1.2733 (October 23rd high) was broken, the traders contemplate the next at 1.3000 (key), 1.3353 (October 21st high) and 1.3769 (October 14th high). Despite that, the cross is movig away from its intraday high at 1.3292.

Meanwhile, the 60-minute Relative Strenght Index (RSI) is at 38 points, rebounding from the overbought area. The average volatility per hour is 500 pips. Going with the daily graphics, we see that the current price is under the 38.20% (1.3055) and over the 50.00% (1.2139) Fibonacci retracement lines.



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