Weekly Forex Signals
Rate cuts speculation could crumble unsteady dollar
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LONG SIGNAL |
SHORT SIGNAL |
| EUR/USD |
- Buy a break of resistance level at 1.3960
- Buy a break of resistance level at 1.4145
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- Sell a break of support level at 1.3825
- Sell a break of support level at 1.3785
- Sell a failure of breaking the resistance 1.3960
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Fundamental
Federal Reserve Bank of San Francisco President Janet Yellen said the U.S. central bank must have a “timely” plan for ending lending programs created since the start of the global financial crisis. “Many of the interventions are novel, so no straightforward methods are available to quantify their effectiveness,” Yellen said in remarks prepared for a speech today in San Francisco. “The Fed must ensure that it has an exit strategy to wind down the facilities in a timely and effective way when they are no longer needed.”
Fed Chairman Ben S. Bernanke has created more than $2 trillion of emergency lending programs since December 2007, using the Fed’s balance sheet and money-creation authority to cushion the economy from the credit crunch. Yellen’s remarks come less than three weeks after Fed policy makers cut the federal funds rate, or the rate banks charge one another for overnight loans, to as low as zero for the first time. The central bank also shifted its focus to the amount and type of debt it buys
Technical
Technical analysis show us the euro may continue its uptrend as MACD gives us a buying signal by crossing MACD line to the signal line and RSI breaks 30% line downwards. Bollinger gives us a bullish signal by closing the candle above the middle band.
Trends
Primary Tendency (Daily Chart): The primary tendency is still in an uptrend.
Secondary Tendency (Four Hour Chart): The pair fails to make a higher high.
Minor Tendency (Hourly Chart): The Minor trend is clear downtrend.
Resistance
1.3960
1.4145
Support
1.3825
1.3785
Technical Indicators
Crossing of two moving averages and closing price of the candle is above the short term moving averages.
Histogram MACD gives us a bearish signal.
RSI (Relative Strength Index) breaks 70% level downwards.
Bollinger gives us a bullish signal after closing the candle above the middle 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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