FX.co ★ Weekly forecast and an intraday analysis of EUR/USD for October 20-24, 2014

Weekly key economic data-

The pair has some important key events during this week, especially on Thursday. Traders will eye Thursday's French and German Flash Manufacturing and Services PMIs, Spanish unemployment rate.

Weekly forecast

In the daily chart, the pair closed above the 20Dsma and that provided good support. On a weekly basis, the pair has resistance at 1.2838, 1.287, 1.2901, and above these, 1.2945 (50Dsma) will act as strong resistance. On the down side 1.27, 1.2650 and 1.2570 will act as minor support levels. 1.25 will act as a key support level, below this, we can expect a free fall to 1.2430 and 1.22 (200Msma) levels. We recommend strong buying above 1.2838 levels, for targets at 1.2885 and 1.2900 levels. In case of a daily close below 1.2700, the bears may have an upper hand.

Recommendation- For an intraday view, the prices has been trading below the hourly key moving averages 12ema and 21hrsma. The pair has been taking support at the upper end of the triangle in the h4 chart. For today's session, the pair has support zone at 1.2735 to 1.2728 levels, below these, 1.2706 will act as strong support zone. We recommend buying above 1.2762 for targets 1.2787, 1.2805 and 1.2830 levels, safe buying is expected above 1.2790 levels. We recommend selling below 1.2725 with targets at 1.2706, 1.2680 levels.

On a positional basis, overall the pair favors bears. Selling will mint the money.