Euro Certain To Bounce Back Ahead Of Weakened Dollar

The euro fell against the dollar and the yen on speculation the European Central Bank will cut interest rates to a record to counter a deepening recession, diminishing the allure of assets in the 16-nation region. The euro dropped versus 12 of the 16 most-active currencies after the European Commission yesterday said the euro-area economy will shrink 4 percent this year, a contraction twice as deep as projected three months ago. The dollar rose versus 12 of 16 currencies after the Wall Street Journal reported that U.S. regulators will tell 10 lenders to raise more capital, reviving demand for the relative safety of the greenback.

Trading Tactics

Buy EUR/USD on signs of a clear uptrend.

The buying point is at 1.3364; Pivot point is the take profit at 1.3498; Fibonacci 38.2% is the stop loss at 1.3250

The selling point is at 1.3230; Pivot point is the take profit at 1.3131; Fibonacci 23.6% is the stop loss at 1.3327

Technical: Euro breaks the previous resistance and form a new high against U.S. dollar with a bounce on Pivot point level. A move back higher could set up a test of 1.3498

The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.

Finotec Group Inc.
http://www.finotec.com/

Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.