Weekly Forex Signals
Downtrend on short term looks certain for Euro
|
LONG SIGNAL |
SHORT SIGNAL |
| EUR/USDUSD |
- Buy a break of resistance level at 1.4460
- Buy a break of resistance level at 1.4500
- Buy a bounce at 1.4300
|
- Sell a break of support level at 1.4300
- Sell a break of support level at 1.4220
- Sell a failure of breaking the resistance 1.4460
|
Fundamental
The Euro declined on the first trading day of 2010, testing as low as 1.4257 to the US Dollar. Sterling Pound followed suit, losing as much as 0.5% against the USD. The US unit advanced as a Credit Suisse measure tracking the market’s priced-in interest rate expectations rose to the highest since October to show traders now expect the US Federal Reserve to add 108 basis points to borrowing costs over the next 12 months.
Technical
Technical analysis show us the euro may correct upwards before continues its downtrend as MACD giving us a buying signal by crossing MACD line to the signal line and RSI breaks 30% line upwards. Bollinger gives us a bullish signal by closing the candle above the lower band.
Trends
Primary Tendency (Daily Chart): The primary tendency breaks uptrend line downwards.
Secondary Tendency (Four Hour Chart): The pair could not break the channel.
Minor Tendency (Hourly Chart): The Minor bounced on Fibonacci 23.6% level.
Resistance
1.4460
1.4500
Support
1.4300
1.4220
Technical Indicators
Crossing of two moving averages and closing price of the candle is below the short term moving averages.
MACD gives us a bullish signal.
RSI (Relative Strength Index) breaks 30% line upwards.
Bollinger gives us a bullish signal after closing the candle above the lower line.
Finotec Group Inc.
http://www.finotec.com/
Disclaimer: FINOTEC Trading's 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.
|
