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Euro takes full advantage of worn−out dollar

Mon, Oct 19 2009, 10:52 GMT
by Anthony Boyajian

Finotec Group Inc.


Long signalShort signal
Buy a break of resistance level at 1.4970Sell a break of support level at 1.4830
EUR/USDBuy a break of resistance level at 1.5000Sell a break of support level at 1.4675
Buy a bounce at 1.4830Sell a failure of breaking the resistance 1.4970


Fundamental

The U.S. dollar will extend declines as the global economy’s recovery prompts investors to shift away from U.S. assets, according to Pacific Investment Management Co., which runs the world’s biggest bond fund. Fundamental forces are set to put downward pressure on the dollar as the recovery gathers momentum, Pimco’s strategic adviser Richard Clarida wrote on the company’s Web site. Those forces include massive budget deficits, bets the Federal Reserve will keep borrowing costs near zero for an extended period, and prospects for a double-dip recession in the U.S., he said.


Technical

Technical analysis shows the euro may continue its uptrend as MACD giving us a buying signal by crossing the signal line to MACD line upwards, RSI is in an uptrend. We have strong demand in the market as stochastic shows us the market movement and Bollinger gives us a bullish signal by closing the candle above the middle band.

EUR/USD (Daily Chart)

The primary tendency is in a clear uptrend.

EURUSD

EUR/USD (4 Hour Chart)

The pair bounced on Fibonacci 23.6% level.

EURUSD

EUR/USD (Hourly Chart)

The Minor trend forms a lower resistance.

EURUSD

Resistance
1.4970
1.5000

Support
1.4830
1.4675


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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