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Tuesday, May 18, 2010

Euro/Dollar (EUR/USD) Technical Analysis - Daily, May 18, 2010

Euro/Dollar (EUR/USD) forex market is a nervous one today with many swings in both directions.
On the daily graph (click on the graph for a better view) we see the Euro tries to recover some of its loses against the Dollar from the past week but still the major trend is negative toward the Euro. Stochastic is directed upward so this explains to some part today's efforts of the Euro to gain strength.
On the 4 hour graph the Euro seems to have some more road to walk before gets in the overbought area. Now it trades around 23,6% Fibonacci retracement level from the last downward movement. It was for a while above it but that didn't last long and now it trades below it again.
On the smaller time-frames graphs there are multiple bearish divergences formed which could explain the nervousness of the market around current levels.
Still the bigger time-frame graphs look a bit positive for the Euro so it might try another test of 1.2430/40 area.

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