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Thursday, July 29, 2010

Euro/Dollar (EUR/USD) Technical Analysis - Daily, July 29, 2010

The Euro/Dollar pair was in quite an uptrend for the last weeks. The graphs however show this could be close to an end. We examined the weekly graph in our weekly technical analisys and now the Daily one looks promising.

The Daily Euro/Dollar graph (click on it for a better view) shows the pair was making new highs for the last several weeks while the MACD continued to make lower highs. Now its even on the negative side. The Stochastic shows the Euro is now in the overbought area.
The bearish MACD divergence combined with the overbought condition could trigger pretty soon selling of the Euro after all the buying power gets too exhausted.

A possible trigger for such a movement could be any of the news expected today - the Unemployment change in Germany, the Economic confidence in EU, M4 Money supply in UK or the Jobless claims in USA. One may follow these news (and even more) in our Economic calendar .

Tuesday, July 27, 2010

Euro/Dollar (EUR/USD) Technical Analysis - Weekly, 31 week, 2010

It's been a while since our last technical analysis of the Euro/Dollar currency pair. The Euro continued its upward movement supported by the strong oversold conditions of the previous months. Now it trades around 1.298/1.30 where the 61.8 Fibonacci retracement level lays. On the daily graph we see a continuing upward movement of the pair price for the last 2-3 weeks while the indicators continue to make lower highs.

The weekly graph of the Euro/Dollar pair (click on it for a better view) presents an interesting situation. MACD is on positive side while the MAs are still negative. The Stochastic is in overbought area. And the price of the Euro is at the 61.8 Fibonacci level. A fail to penetrate this level could result in another upward movement of the Dollar. The bearish divergence seen on the daily graph supports the idea that the current resistance level would sustain and another fall of the Euro could be on its way. For a clearer view we might look at the monthly graph below.

On the monthly graph we see the major trend is still up for the Dollar and down for the Euro. The Stochastic is signaling an increase of the Euro value which took place during the current month. Still the major trend is not changed and having in mind the weekly and daily graphs another fall of the Euro towards the 1.19/1.20 levels is possible soon.