Weekly Forex Signals
U.S. Dollar could drop as euro seems to regain strength.
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LONG SIGNAL |
SHORT SIGNAL |
| EUR/USD |
- Buy a break of resistance level at 1.5500
- Buy a break of resistance level at 1.5645
- Buy a bounce at 1.5365
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- Sell a break of support level at 1.5365
- Sell a break of support level at 1.5340
- Sell a failure of breaking the resistance 1.5500
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Fundamental
The U.S. dollar was a shade weaker on Monday but held on to most of last week's gains, supported by labour market data and speculation the Federal Reserve will not need to cut interest rates again.
The dollar firmed on Friday after U.S. payrolls fell in April by a smaller-than-expected 20,000, while the jobless rate actually dipped to 5.0 percent.
“The drop in the unemployment rate has strengthened the market's conviction that the Fed is done," said Darren Gibbs, an economist at Deutsche Bank.
Technical
The Euro may start its uptrend again as we can see strong demand in the market, based on technical indicators like RSI, which is giving us a clear bullish signal, MACD breaks the equilibrium level and is pointing upwards, Bollinger gives us a bullish signal by closing the candle above the middle band.
Trends
Primary Tendency (Daily Chart): The primary tendency breaks the trend line with a strong retracement.
Secondary Tendency (Four Hour Chart): The pair is in oversold area.
Minor Tendency (Hourly Chart): The Minor trend shows us a failure swing bottom formation.
Resistance
1.5500
1.5646
Support
1.5365
1.5340
Technical Indicators
Moving Average: Crossing of two moving averages and closing price of the candle is below the short term moving averages.
RSI: RSI (Relative Strength Index) is going to bounce on 30% line.
MACD: MACD crosses the signal line and breaks the zero level.
Bollinger Bands: Bollinger gives us a bullish signal after closing the candle above the lower band.
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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.
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