FX.co ★ EURUSD technical analysis for October 31, 2011

The single European currency started correction on Friday. Today correction has grown stronger which can be seen in the chart in the form of an impulse candlestick of over 130 points (as of 15:47).
The price began rebounding from 23.6% level of Fibonacci long-term correction. This level served as an expected SAR resistance level for the price and now we should assess the prospects of future movements and search for support levels. The closest support level is 1.3907 level (50% Fibonacci midterm correction level). This level can be as both real and supposed support. The point is that the level is strong, so it can easily stop and turn the price. However, taking into consideration impulses of the current movement and data of the oscillators, we can assume that the price may well overcome this level consolidating on it or a simple breaking it impulsively. Among more important targets there is 1.3666 level which has been recurrently acknowledged as a forcible SAR level. Moreover, this level is not a simple SAR level; it corresponds to 61.8% Fibonacci mid-term correction.