Technical analysis of EUR/USD currency pair 05.03.2012
When the price reached the descending trend line, which is drawn in the picture, on 1st of May, the price was starting falling. This movement was exactly what all technical traders predicted about the market’s movement. Right now, we can see in the daily chart that the price is going to fall and there is not any evidence of ascending trend. The daily candle is closed under the average of 5 days and it shows the price is going to start a descending movement, even a small one, to reach the supporting trend line which you can see in the below picture. Also, by using Stoch indicator again we see that the price wants to fall and we see the possible falling signal in this indicator. If, according to these hypotheses, the price started its descending movement, it would reach the supporting trend’ line at least.
2012.05.03
Written by the technical team of FxGlory Brokerage