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Wednesday, May 5, 2010

Euro/Dollar (EUR/USD) Technical Analysis - Daily, May 5, 2010

The Euro took quite a plunge today with a loss of about a cent and a half. It started the day trading at about 1.2970/80 and currently trades at about 1.2815/20 US Dollar to one Euro.

As it can be seen on the Daily Eur/USD graph the resistance level around 1.30 (mentioned in the monthly Euro/Dollar technical analysis) was broken and now all the indicators are pointing south.
the graphs of the bigger timeframes agree with such a scenario so more surely than not the downfall of the Euro could be expected to continue for at least today and tomorrow.

On the smaller timeframe graphs the Euro looks oversold but as the bigger graphs are contrary to such a view, they could prevail. Nonetheless there could be times of revival of the Euro during the day so it might take a bit of breath before diving again.

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