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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 .