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U.S. Dollar could drop as euro looking to rebound

Tue, Jun 24 2008, 06:15 GMT
by Benny Menashe

Finotec Group Inc.


Long signalShort signal
Buy a break of resistance level at 1.5610Sell a break of support level at 1.5580
EUR/USDBuy a break of resistance level at 1.5655Sell a break of support level at 1.5460
Buy a bounce at 1.5580Sell a failure of breaking the resistance 1.5610


Fundamental

The dollar was little changed against the euro and the yen on Monday after world energy powers were unable to come up with a quick fix to rein in runaway oil prices at an emergency meeting over the weekend.
Oil edged up 26 cents to $135.62 a barrel after Saudi Arabia, the host country of the meeting, vowed to pump more oil but said that such a move would not be enough to calm the energy market.


Technical

The Euro may continue its uptrend against U.S. dollar as we can see strong demand in the market, based on technical indicators like RSI, which bounced on 30% line, MACD crosses the signal line and breaks the equilibrium level upwards, and Bollinger gives us a bullish signal by closing the candle above the middle band.

EUR/USD (Daily Chart)

The primary tendency gives us a flag formation.

Daily Chart

EUR/USD (4 Hours Chart)

The pair bounced on a strong support level.

Hours Chart

EUR/USD (Hourly Chart)

The Minor trend shows us a clear uptrend.

hourly chart

Resistance
1.5610
1.5655

Support
1.5580
1.5460


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