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Posted by Finotec on Monday July 26, 2010 8:10 am
The combination of growing confidence in Europe’s economy and
mounting evidence of a slowdown in the U.S. is driving euro bears into
hiding.
| Long signal | Short signal |
| |
Buy a break of resistance level at 1.2960 |
Sell a break of support level at 1.2730 |
| EUR/USD |
Buy a break of resistance level at 1.3030 |
Sell a break of support level at 1.2700 |
| |
Buy a bounce at 1.2730 |
Sell a failure of breaking the resistance 1.2960 |
Fundamental
The combination of growing confidence in Europe’s economy and mounting
evidence of a slowdown in the U.S. is driving euro bears into hiding.
After tracking the euro’s slide from about $1.45 at the beginning of
2010, the median forecast of currency strategists has stayed within two
cents of $1.20 since the start of June, according to data compiled by
Bloomberg. Goldman Sachs Group Inc. and Wells Fargo & Co. raised
their estimates in the past two weeks, joining HSBC Holdings Plc and
Deutsche Bank AG in predicting a stronger euro.
Technical
Technical analysis shows the euro may continue the bullish movement as
MACD crosses the signal line upwards and RSI bounces on 30% line.
Bollinger gives us a bullish signal by closing the candle above the
middle band.
EUR/USD (Daily Chart)
The primary tendency breaks downtrend line upwards.
EUR/USD (4 Hour Chart)
The pair is in a clear uptrend.
EUR/USD (Hourly Chart)
The Minor trend trying to break Fibonacci fan.
Resistance
1.2960
1.3030
Support
1.2730
1.2700
