Weekly Forex Signals
Euro long−term objectives could see it go further down against US dollar
Mon, Jul 6 2009, 09:10 GMT
by Benny Menashe
Finotec Group Inc. | View company's profile
Vote:

7

0
| Buy a break of resistance level at 1.4030 | Sell a break of support level at 1.3900 |
| Buy a break of resistance level at 1.3975 | Sell a break of support level at 1.3830 |
| Buy a bounce at 1.3900 | Sell a failure of breaking the resistance 1.4030 |
Fundamental
European Central Bank President Jean- Claude Trichet said he’s concerned that a lack of coordination of economic policy around the world will allow the imbalances that led to the financial crisis to persist. “There is a very big danger that major countries internalize their problems,” Trichet said at an economic conference in Aix en Provence, France, today. “If we return to a picture of internal and external deficits that led to this crisis, we’ll have the recipe for a new crisis.”
His warning precedes the July 8 meeting of leaders of the Group of Eight nations, who are gathering in Italy with their counterparts from India, China and Brazil to discuss responses to the first global recession since World War II.
Technical
Technical analysis shows us the euro may continue its downtrend against U.S. dollar as MACD gives us a crossover with 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 breaks the trend line.

EUR/USD (Hourly Chart)
The Minor trend is in a clear downtrend.

Resistance
1.4030
1.3975
Support
1.3900
1.3830
Published on
Mon, Jul 6 2009, 10:55 GMT
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