In contrast to the upward movement of US Dollar during the second half of 2008, here we still don't see any clear trend turning divergence to be formed. The two red lines (A and B) shows the bullish divergence for the Euro which was followed by its own upward trend in the beginning of 2009.
What the current graph has is a MACD indicator whose Histogram is getting closer to being positive but the value of the Euro against the US Dollar still falls. This could indicate either an end of the fall or a stronger than expected downtrend for the Euro.
The Stochastic being in neither oversold or overbought area shows the current movements on the weekly graph are not supposed to be extremely strong and supported by a large amount in either of the directions.
With all that said what could be expected for the current week is a graduate continuation of the upward Dollar trend accompanied by many sideway movements. If we are getting closer to the end of the Euro fall a higher volatility could also be expected.
No comments:
Post a Comment