Euro Inactivity Helps USD Rise In Style
The euro held steady at $1.3077, not far from a 12-week high of $1.3107 hit on Thursday, when data showed a jump in euro zone economic sentiment to a 28-month high and a decline in German unemployment. Key technical resistance stood around $1.3120/25, which was the 38.2 percent retracement of the December 2009 high at $1.5141 to the June low of $1.1876, traders said. Previous resistance of $1.3050 was providing support. A raft of surprisingly upbeat economic data from Germany and receding sovereign credit risk concerns have buoyed the euro.
Trading Tactics
A double top formation could be an opportunity to sell EUR/USD.
A buying point is at 1.3130; previous resistance is the take profit at 1.3250; pivot point is the stop loss at 1.3050
A selling point is at 1.3030; Fibonacci 38.2% is the take profit at 1.2965; Pivot point is the stop loss at 1.3125
Technical: Euro forms a double top pattern and may start a minor downtrend. A move back lower could set up a test of 1.3050
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line downwards; Momentum and RSI (Relative Strength Index) are in a downtrend; stochastic oscillator is in a bearish direction.
The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.
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