Momentum Holds Euro While Dollar Looks to Recover

The Federal Reserve and four other central banks announced a currency swap arrangement that will give the U.S. central bank access to as much as $285 billion in euros, yen, British pounds and Swiss francs.

"Should the need arise, euro, yen, sterling and Swiss francs would be provided to the Federal Reserve via these additional swap arrangements with the relevant central banks," the Fed said in a statement today. "Central banks continue to work together and are taking steps as appropriate to foster stability in global financial markets." The plan, if used, "would enable the provision of foreign currency liquidity" by the Fed to U.S. financial institutions, the U.S. central bank said.

Trading Tactics

Sell EUR/USD on signs of downtrend.

The buying point is at 1.3485; previous resistance is the take profit at 1.3583; Fibonacci 38.2% is the stop loss at 1.3403

The selling point is at 1.3384; Pivot point is the take profit at 1.3234; Fibonacci 23.6% is the stop loss at 1.3472

Technical: Euro continues its downtrend and breaks the previous support downwards. A move back lower could set up a test of 1.3234

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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