The month of May ended with a typical monthly reversal figure knows as key reversal on EurUsd. The monthly bar has completely incorporated the previous one as in 2011 and 2009, while in 2010, the signal failed.
The fact that this figure has been formalized exactly close to the long term down trend line certainly has a significant meaning to be added to the graphical shape of the Macd.
In the cases of 2009 and 2011, the MACD was in positive territory and shortly after, with the cutting of the signal line, the downward arrived on time; 2011 was not effective just because the MACD was still in a negative territory and was rising.
Obviously we still have not cut down on the MACD , but certainly this will be a technical aspect to follow in the coming weeks in order to get clearer long term technical signals.
During next week the data on U.S. unemployment and the ECB rate decision may already be a pretext to get stronger answers.
The fact that this figure has been formalized exactly close to the long term down trend line certainly has a significant meaning to be added to the graphical shape of the Macd.
In the cases of 2009 and 2011, the MACD was in positive territory and shortly after, with the cutting of the signal line, the downward arrived on time; 2011 was not effective just because the MACD was still in a negative territory and was rising.
Obviously we still have not cut down on the MACD , but certainly this will be a technical aspect to follow in the coming weeks in order to get clearer long term technical signals.
During next week the data on U.S. unemployment and the ECB rate decision may already be a pretext to get stronger answers.
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