Weekly Forex Signals

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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.
| Buy a break of resistance level at 1.4970 | Sell a break of support level at 1.4830 |
| Buy a break of resistance level at 1.5000 | Sell a break of support level at 1.4675 |
| Buy a bounce at 1.4830 | Sell 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.

EUR/USD (4 Hour Chart)
The pair bounced on Fibonacci 23.6% level.

EUR/USD (Hourly Chart)
The Minor trend forms a lower resistance.

Resistance
1.4970
1.5000
Support
1.4830
1.4675
Published on
Mon, Oct 19 2009, 10:59 GMT
Archive
- Long-term objectives could see Euro rise against USD
Published On Mon, Nov 16 2009, 12:57 GMT
- Sterling regain due to little thrust on U.S. dollar
Published On Mon, Nov 9 2009, 10:08 GMT
- USD looking fragile against ineffective Yen
Published On Mon, Nov 2 2009, 09:26 GMT
- Uptrend on long term looks certain for Euro
Published On Mon, Oct 26 2009, 10:45 GMT
- Euro takes full advantage of worn-out dollar
Published On Mon, Oct 19 2009, 10:52 GMT
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Finotec
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http://www.finotec.com/ | support@finotec.com
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