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Monday, May 10, 2010

Euro/Dollar (EUR/USD) Technical Analysis - Daily, May 10, 2010

Click on the graphs for a better view.

The daily Euro/Dollar graph looks promising for the Euro but still now it is traded around its MA level. As the increase for today is quite big there is a possibility for a retreat to take place for some time.
Still the Stochastic is pointing strongly upward so any decrease in the value of Euro against the US Dollar should be easily covered.

The smaller time-frame graphs (the 4 hour and the 1 hour) are still positive for the Euro even though on the 1 hour graph there is a small bearish divergence seen which should be cleared out before the upward movement of the Euro has a chance to continue.

Having this in mind there is a chance in a very short term we see an increase for the US Dollar against the Euro. After that the graphs should be looked at again to see if that increase has a strength to continue and grow.

1 comment:

annacoull said...

There are rumours that the German government is printing deutschmarks as Germans appear to be turning against the Euro project. Further stories of Sarkozy throwing his toys out of his pram and threatening to leave the Euro are all adding pressure to the common currency's woes - does parity beckon or will the support in the USD1.23 area hold and provide a platform for an eventual move higher?