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Weekly Forex Signals

Down trend on long term looks certain for Euro

Mon, Jan 26 2009, 09:04 GMT
by Benny Menashe

Finotec Group Inc.  |  View company's profile


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Long signalShort signal
Buy a break of resistance level at 1.3385Sell a break of support level at 1.2770
EUR/USDBuy a break of resistance level at 1.3105Sell a break of support level at 1.2645
Buy a bounce at 1.2770Sell a failure of breaking the resistance 1.3385


Fundamental

The dollar will decline as gold’s 4 percent rally today signals the Federal Reserve may succeed in reviving the economy by pumping money into the financial system, boosting inflation, according to Citigroup Inc. European Central Bank President Jean-Claude Trichet said that no-one is challenging the “credibility” or the “solidity” of the euro.


Technical

Technical analysis show us the euro may continue its downtrend as MACD giving us a selling signal by crossing MACD line to the signal line and RSI breaks 70% line downwards. Bollinger gives us a bearish signal by closing the candle below the lower band.

EUR/USD (Daily Chart)

The primary tendency fails to break standard error channel upper line.

Daily Chart

EUR/USD (4 Hour Chart)

The pair is in a clear downtrend.

Hour Chart

EUR/USD (Hourly Chart)

The Minor trend breaks Fibonacci 23.6% level.

Hourly Chart

Resistance
1.3385
1.3105

Support
1.2770
1.2645


Archive


Legal disclaimer and risk disclosure

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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