Weekly Forex Signals
USD takes full advantage of worn-out Euro
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LONG SIGNAL |
SHORT SIGNAL |
| EUR/USD |
- Buy a break of resistance level at 1.3920
- Buy a break of resistance level at 1.4015
- Buy a bounce at 1.3800
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- Sell a break of support level at 1.3800
- Sell a break of support level at 1.3725
- Sell a failure of breaking the resistance 1.3920
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Fundamental
Analyst forecasts about the dollar have become the most scattered in two years, driving up foreign- exchange price swings and increasing risks that trading strategies and corporate hedges will backfire. Redtower Asset Management, an Aberdeen, Scotland, investment adviser, sees the currency strengthening to $1.16 per Euro by year’s end, from $1.3906 today, as the world economy recovers from the first global recession since World War II. Standard Chartered Plc predicts a more stable economy will weaken the dollar to $1.55 as the Federal Reserve keeps its benchmark interest rate near zero to sustain growth, prompting investors to sell greenbacks for higher-returning assets.
Technical
Technical analysis shows the euro may continue its downtrend as MACD giving us a selling signal by crossing the signal line to MACD line downwards RSI breaks 70% line and is in a downtrend. We have strong supply in the market as stochastic shows us the market movement and Bollinger gives us a bearish signal by closing the candle below the middle band.
Trends
Primary Tendency (Daily Chart): The primary tendency form a head and shoulders formation.
Secondary Tendency (Four Hour Chart): The pair is in a clear downtrend.
Minor Tendency (Hourly Chart): The Minor trend breaks standard error channel lower level.
Resistance
1.3920
1.4015
Support
1.3800
1.3725
Technical Indicators
Crossing of two moving averages and closing price of the candle is below the short term moving averages.
MACD gives a bearish signal after crossover.
RSI (Relative Strength Index) is in a downtrend.
Bollinger gives us a bearish signal after closing the candle below 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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