Weekly Forex Signals
U.S. dollar set for further lows as Euro continues to take advantage
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LONG SIGNAL |
SHORT SIGNAL |
| EUR/USD |
- Buy a break of resistance level at 1.4060
- Buy a break of resistance level at 1.4145
- Buy a bounce at 1.3910
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- Sell a break of support level at 1.3910
- Sell a break of support level at 1.3840
- Sell a failure of breaking the resistance 1.4060
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Fundamental
The European Central Bank's Governing Council discussed a package of asset purchases worth about 125 billion euros ($170 billion) this month, more than twice the amount finally agreed upon, people briefed on the talks said.
The package proposed at the May 7 council meeting included buying commercial paper and corporate bonds, said the people, who declined to be identified because the discussions were private. After the meeting, President Jean-Claude Trichet announced plans to acquire 60 billion euros of covered bonds, low-risk securities backed by mortgages and public-sector loans. An ECB spokeswoman declined to comment.
Technical
Technical analysis shows us the Euro may climb to 1.4700 and continue its uptrend. We can see the demand in the market by using some indicators like MACD which giving us a buying signal by crossing the MACD line to the signal line. RSI shows us the strength in the market. Bollinger gives us a bullish signal by closing the candle above the middle band.
Trends
Primary Tendency (Daily Chart): The primary tendency breaks Fibonacci fan upper level.
Secondary Tendency (Four Hour Chart): The pair makes a higher high and continues its uptrend.
Minor Tendency (Hourly Chart): The Minor trend bounced on pivot point.
Resistance
1.4060
1.4145
Support
1.3910
1.3840
Technical Indicators
Crossing of two moving averages and closing price of the candle is above the short term moving averages.
MACD gives us a bullish signal after the crossover.
RSI (Relative Strength Index) in a clear uptrend.
Bollinger Bands 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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