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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

Long signalShort signal
Buy a break of resistance level at 1.4030Sell a break of support level at 1.3900
EUR/USDBuy a break of resistance level at 1.3975Sell a break of support level at 1.3830
Buy a bounce at 1.3900Sell 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.

EURUSD

EUR/USD (4 Hour Chart)

The pair breaks the trend line.

EURUSD

EUR/USD (Hourly Chart)

The Minor trend is in a clear downtrend.

EURUSD

Resistance
1.4030
1.3975

Support
1.3900
1.3830


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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