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
| Buy a break of resistance level at 0.9120 | Sell a break of support level at 0.8800 |
| Buy a break of resistance level at 0.9035 | Sell a break of support level at 0.8750 |
| Buy a bounce at 0.8800 | Sell 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.

EUR/USD (4 Hour Chart)
The pair bounced on a strong support level.

EUR/USD (Hourly Chart)
The Minor trend gives us a double bottom.

Resistance
0.9120
0.9035
Support
0.8750
0.8675
Published on
Mon, Feb 2 2009, 11:17 GMT
Archive
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Vote:

14

3
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