Weekly Forex Signals
Momentum holds U.S. dollar while sterling looks to recover
|
LONG SIGNAL |
SHORT SIGNAL |
| GBP/USD |
- Buy a break of resistance level at 1.5670
- Buy a break of resistance level at 1.5730
- Buy a bounce at 1.5515
|
- Sell a break of support level at 1.5515
- Sell a break of support level at 1.5450
- Sell a failure of breaking the resistance 1.5670
|
Fundamental
Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010. “Absolutely not,” Geithner said, when asked in an ABC News interview broadcast yesterday whether a downgrade is a concern. “That will never happen to this country.” Geithner said investors around the world turn to U.S. Treasury securities and dollar-denominated assets whenever they are worried about global stability. That reflects “basic confidence” in the U.S. and its ability to bounce back from the global recession, he said.
Technical
The U.K. currency might start to rebound after a strong bearish movement based on technical analysis. Indicators gives us a bullish signal for a correction reason like RSI, which bounces on 30% line upwards, MACD crosses the signal upwards on hourly chart, and Bollinger gives us a bullish signal by closing the candle above the lower band.
Trends
Primary Tendency (Daily Chart): The primary tendency is in a clear downtrend.
Secondary Tendency (Four Hour Chart): The pair bounced on standard error channel lower line.
Minor Tendency (Hourly Chart): The Minor trend bounced on pivot point level.
Resistance
1.5670
1.5730
Support
1.5515
1.5450
Technical Indicators
Crossing of two moving averages and closing price of the candle is below the short term moving averages.
RSI (Relative Strength Index) bounces on 30% level.
MACD shows us weakness in the market by crossing MACD line to the signal line downwards.
Bollinger gives us a bullish signal by closing the candle above the lower band.
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.
|
