Share It

Share |

Thursday, May 20, 2010

Euro/Dollar (EUR/USD) Technical Analysis - Daily, May 20, 2010

Today's technical analysis of Euro/Dollar pair lead us to an interesting conclusion.

On the daily graph (click on it for a better view) of Euro/Dollar pair we see a bullish movement for the Euro. This explains the upward movement for the last two days. A possible target could be around 1.25 where the MA and several Fibonacci levels are found.

Still the smaller time-frame graphs suggest in a shorter term there could be a pull back of the Euro.
The 4 hour graphs still has some time to go up but on the others there are severe bearish divergences seen.
On the 1 hour graph we see the Euro tries to get higher but obviously it's loosing its strength. The Stochastic is in its highest levels but still the MACD is almost negative. Should this divergence takes the lead we could see another drop of the Euro at least around the levels it floated during the Asian trading day - 1.2320/30.
Having in mind the fragile Euro sentiment this could be easily broken and another fall below 1.23 could be seen.

No comments: