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Weekly Forex Signals

10

1

USD takes full advantage of worn−out Euro

Mon, Jun 22 2009, 10:46 GMT
by Benny Menashe

Finotec Group Inc.


Long signalShort signal
Buy a break of resistance level at 1.3920Sell a break of support level at 1.3800
EUR/USDBuy a break of resistance level at 1.4015Sell a break of support level at 1.3725
Buy a bounce at 1.3800Sell a failure of breaking the resistance 1.3920


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.

EUR/USD (Daily Chart)

The primary tendency form a head and shoulders formation.

EURUSD

EUR/USD (4 Hour Chart)

The pair is in a clear downtrend.

EURUSD

EUR/USD (Hourly Chart)

The Minor trend breaks standard error channel lower level.

EURUSD

Resistance
1.3920
1.4015

Support
1.3800
1.3725


Archive

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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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