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Weekly Forex Signals

Sterling could strengthen as euro looks to break strong support

Mon, Feb 2 2009, 10:26 GMT
by Benny Menashe

Finotec Group Inc.  |  View company's profile


Vote:

14

3

Long signalShort signal
Buy a break of resistance level at 0.9120 Sell a break of support level at 0.8800
EUR/GBPBuy a break of resistance level at 0.9035Sell a break of support level at 0.8750
Buy a bounce at 0.8800Sell a failure of breaking the resistance 0.8675


Fundamental

The euro fell to the lowest level in almost two months against the dollar on speculation a report tomorrow will show European producer prices slid a fifth month, giving the region’s central bank more room to cut interest rates.
The British pound declined the most in almost two weeks on concern the U.K. banking crisis will deepen after Moody’s Investors Service cut its long-term debt rating of Barclays Plc.


Technical

Technical analysis shows us the euro may break the previous support 0.8800. We can see the weakness in the market by using some indicators like MACD which giving us a selling signal by crossing the MACD line to the signal line. RSI breaks 70% level downwards. Bollinger gives us a bearish signal by closing the candle below the middle band.

EUR/USD (Daily Chart)

The primary tendency shows us a clear failure swing pattern.

Daily Chart

EUR/USD (4 Hour Chart)

The pair bounced on a strong support level.

Hour Chart

EUR/USD (Hourly Chart)

The Minor trend gives us a double bottom.

Hourly Chart

Resistance
0.9120
0.9035

Support
0.8750
0.8675


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.
Vote:

14

3

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