Weekly Forex Signals
Euro long-term objectives could see it go further down against US dollar
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LONG SIGNAL |
SHORT SIGNAL |
| EUR/USD |
- Buy a break of resistance level at 1.4030
- Buy a break of resistance level at 1.3975
- Buy a bounce at 1.3900
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- Sell a break of support level at 1.3900
- Sell a break of support level at 1.3830
- Sell a failure of breaking the resistance 1.4030
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Fundamental
European Central Bank President Jean- Claude Trichet said he's concerned that a lack of coordination of economic policy around the world will allow the imbalances that led to the financial crisis to persist. “There is a very big danger that major countries internalize their problems,” Trichet said at an economic conference in Aix en Provence, France, today. “If we return to a picture of internal and external deficits that led to this crisis, we'll have the recipe for a new crisis.”
His warning precedes the July 8 meeting of leaders of the Group of Eight nations, who are gathering in Italy with their counterparts from India, China and Brazil to discuss responses to the first global recession since World War II.
Technical
Technical analysis shows us the euro may continue its downtrend against U.S. dollar as MACD gives us a crossover with signal line . RSI breaks 70% level downwards. Bollinger gives us a bearish signal by closing the candle below the middle band.
Trends
Primary Tendency (Daily Chart): The primary tendency shows us a clear Failure swing pattern.
Secondary Tendency (Four Hour Chart): The pair breaks the trend line.
Minor Tendency (Hourly Chart): The Minor trend is in a clear downtrend.
Resistance
1.4030
1.3975
Support
1.3900
1.3830
Technical Indicators
Crossing of two moving averages and closing price of the candle is below the short-term moving averages.
MACD gives us a selling signal.
RSI (Relative Strength Index) in a downtrend.
Bollinger Bands gives us a bearish signal after closing the candle below the middle band.
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