EUR/USD analysis of the week (4h candlesticks)
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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
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
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
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
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.
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
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
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.
I think this is all due to the investors who pushed the Euro down on Wednesday as investors continued to price in the likelihood of an interest rate cut from both the European Central Bank and the Bank of England alt on today. The European Central Bank is expected to cut its core rate by half a percentage point to 1.5 percent, and the Bank of England is expected to lower its rate to 0.5 percent on Thursday, also by half a percentage point. Lower interest rates can weaken a currency as investors move funds to where they earn better returns elsewhere.
Hello all traders
I would like to share the intraday update for this currency pair.
EUR/USD intraday: key ST resistance at 1.275.
Pivot: 1.275
Preference: Short positions below 1.275 with targets @ 1.2675 & 1.2625 in extension.
Alternative scenario: Above 1.275 look for further upside with 1.28 & 1.2875 as targets.
Comments: the pair should strike against its next strong resistance, the RSI lacks upward momentum.
As of today, dollar also lost ground, repeating Monday's sharp gains against the pound, AUD & NZD and slipping vs the euro. USD gained against the pound.
I would like to share the intraday update for this currency pair.
EUR/USD intraday: key ST resistance at 1.275.
Pivot: 1.275
Preference: Short positions below 1.275 with targets @ 1.2675 & 1.2625 in extension.
Alternative scenario: Above 1.275 look for further upside with 1.28 & 1.2875 as targets.
Comments: the pair should strike against its next strong resistance, the RSI lacks upward momentum.
As of today, dollar also lost ground, repeating Monday's sharp gains against the pound, AUD & NZD and slipping vs the euro. USD gained against the pound.
The Euro ended the week with one of its best weeks since the end of 2008. Much of the gains the Euro made this week were based on investors testing their risk appetite, as stated above, however news from European Central Bank executives also played a part in the Euro’s rebound. Last week, several ECB board members declared that the crisis was being managed more aggressively and that a light at the end of the tunnel is in sight.
The Euro closed up ½% to the Yen to 126.68, up .16% to the Swiss Franc to 1.5321, down .4% to the Australian Dollar at 1.9641 and down .35% to the Canadian Dollar to 1.6441.
The Euro closed up ½% to the Yen to 126.68, up .16% to the Swiss Franc to 1.5321, down .4% to the Australian Dollar at 1.9641 and down .35% to the Canadian Dollar to 1.6441.
Chart Analysis: EURUSD
EURUSD is slicing lower on the new bout of risk aversion to open the week and ahead of a possibly dovish Trichet on Thursday. Online forex sees a key level comes in just above 1.3100, the 100-day moving average (not an important MA recently, but was very influential in recent years), and also the 50% retracement level for the recent rally to north of 1.3700. Below that, the psychologically important 1.3000 level looms.
EURUSD is slicing lower on the new bout of risk aversion to open the week and ahead of a possibly dovish Trichet on Thursday. Online forex sees a key level comes in just above 1.3100, the 100-day moving average (not an important MA recently, but was very influential in recent years), and also the 50% retracement level for the recent rally to north of 1.3700. Below that, the psychologically important 1.3000 level looms.
Hello all
Here is the Fx trading Recommendations from my Forex broker Avafx
Avafx: Online Forex trading Intraday Updates
For pair EUR/USD
EUR/USD intraday: under pressure.
Pivot: 1.3275.
Our Preference: SHORT positions @ 1.3265 with 1.3115 & 1.305 in sight.
Alternative scenario: The upside penetration of 1.3275 will call for a rebound towards 1.332 & 1.3365.
Comment: the pair stands within a MT bearish channel and should reach its next support, the RSI is badly directed.
Trend: ST Ltd Upside; MT Bullish
Here is the Fx trading Recommendations from my Forex broker Avafx
Avafx: Online Forex trading Intraday Updates
For pair EUR/USD
EUR/USD intraday: under pressure.
Pivot: 1.3275.
Our Preference: SHORT positions @ 1.3265 with 1.3115 & 1.305 in sight.
Alternative scenario: The upside penetration of 1.3275 will call for a rebound towards 1.332 & 1.3365.
Comment: the pair stands within a MT bearish channel and should reach its next support, the RSI is badly directed.
Trend: ST Ltd Upside; MT Bullish
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