EUR/USD analysis of the week (4h candlesticks)

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[maslametan]

nice job

[Pinalli]

Hello,

Last week saw the US dollar slump towards the end of the week as fears over the proposed 900 Billion dollar stimulus package took traders and investors away from the greenback. It is in my opinion that the US needs to rethink their entire fiscal policy at this point. IT is ignorant to believe that they can just print their way out of the economic mess without affecting the global economy in the long run.

The US holds special status as a maker and breaker of economies around the world. Brokers trading the Forex know that the US is relied upon for trade and assistance my countless countries, developing and developed. And yet, their proposed spending bill will put enormous pressure on their own economy, and will have a trickledown effect to many of economies of the world.

In 1930, President Herbert Hoover, in an effort to stave off the coming depression, launched a series of laws that made things worse. By over-spending, and insisting on US made products only – he excluded the world economies from his plans. This snub at the world ended up causing the “great depression” as trade was now limited and “what you had, was what you would get” as they said. Today, 2009, sees the US making the same mistakes they made back then. The worlds economy is one. We are a global entity – and we are mutually reliant upon one another. For the US to have protectionist clauses in an enormous bill that even their own oversight committees believe will not have enough of an impact to help their economy in the long-run is short-sighted.

Forex brokers, traders and the investing community will not be kind to the dollar if this bill passes – as I am sure US public opinion will change drastically towards their new President who promised change. A promise of change seems to be translating itself into a repeat of the past. And the world cannot afford that at this time.

See ya

[andy003]

Intraday outlook for the couple today

EUR/USD
Day trading :Trading Range
Weekly view : Bullish
Mid Term view: Bearish
Short term target : 1.2953 then 1.2980, perhaps 1.3013
mid term target :1.3095,1.3174, 1.3200 and 1.3471
long term target : 1.2400 and 1.1200
Resistances:1.2938/43, 1.3000 and 1.3072
Supports: 1.2900, 1.2860, 1.2773 and 1.2748

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[Pinalli]

The Euro has fallen to a two month low against the dollar on Monday, given the problems that the EU is facing, it is understandable. However it is the strength of the dollar that is puzzling to me. Investors and traders are pumping up the dollar because historically, the USD and the Yen have been the currencies that people turn to in order to stay “safe”. But, if the pundits are right, we are facing a global economic challenge that has not been seen since the Great Depression – simply put, I feel that all those Forex brokers telling their clients to bet on the dollar for lack of a better choice will get burned.

[andy003]

EUR USD as of today is in an downtrend.The currency couple is in a consolidation after the last bearish movement with low volatility. The price should find a resistance below 1,2650 (32 pips). The downtrend should continue to gather momentum.

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To find more analysis, click on the link below

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[andy003]

EUR/USD
EUR/USD Open 1.2674 High 1.2985 Low 1.2663 Close 1.2693

Last week the currency pair reached the lowest level since November 2008, but development of the downward trend did not continue enough.On the daily charts the Euro sharply corrected upwards at the end of the week, forming a convergence, which may cause growth correction of the currency pair. On the four hour chart there is formed a descending wedge, which is a figure for upward conversion. Short signals are rising with testing of the 1.3000 resistance. Going back under 1.2650 will form decreasing signals.
Resistance levels for the day: 1.3000 1. 3130 1.3255
Technical support levels: 1.2650 1.2540 1.2425

Trading range: 1.2715 - 1.2780
Trend is: Upwards

[Pinalli]

Guys Germany came out with its much anticipated IFO business climate indicator which had fallen more than expected to 82.6 – estimates had the level remaining at 83.0. The market did not respond as traders took Tuesday to play the Dollar and Yen in advance of the news coming out of Washington.