EURUSD Market Rhythm October 25, 2012

This is the market rhythm update on EURUSD. The MACD signal shows a V-top formation which indicated an aggressive price turn around. It is in-line with the emotion of the market, whereas the price already reached the EMA 365 resistance.



The EURUSD finally dropped after German IFO data showed that the business climate in euro zone is spiralling downward.

As for the MACD signal, it broke down zero. Means that the EURUSD potentially reached the 200 SMA at around 1.2830. A break lower may send the EURUSD down to SMA 89 at around 1.27.