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Weekly Forex Signals

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Downtrend on short term looks certain for Euro

Mon, Oct 12 2009, 09:15 GMT
by Anthony Boyajian

Finotec Group Inc.


Long signalShort signal
Buy a break of resistance level at 1.4730Sell a break of support level at 1.4650
EUR/USDBuy a break of resistance level at 1.4810Sell a break of support level at 1.4570
Buy a bounce at 1.4650Sell a failure of breaking the resistance 1.4730


Fundamental

Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades. Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.


Technical

Technical analysis show us the euro may continue its downtrend for a short period as MACD gives us a selling signal by crossing MACD line to the signal line and RSI breaks 70% line downwards. Bollinger gives us a bearish signal by closing the candle below the upper band.

EUR/USD (Daily Chart)

The primary tendency is still in an uptrend.

EURUSD

EUR/USD (4 Hour Chart)

The pair breaks previous support level.

EURUSD

EUR/USD (Hourly Chart)

The Minor trend is in a clear downtrend.

EURUSD

Resistance
1.4730
1.4810

Support
1.4650
1.4570


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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