Euro/Dollar (EUR/USD) Technical Analysis - Daily, May 26, 2010

After yesterday's closing of the Euro/Dollar pair near to its open level, today's trade started lower. However the technical analysis shows the direction might change during the day.

The daily graph of EUR/USD (click on it for a better view) shows the Euro gets close to being oversold while the MACD histogram is positive. Still the Stochastic points down but the formation looks promising for an Euro advance. Let's check the lower time-frame graphs.

On the 1 hour graph of Euro/Dollar we see the pair is swinging around the Moving Averages. Still the MAs are positive and the Stochastic points strongly upward. This could lead to at least a short term advance of the Euro against the US Dollar with target placed at the previous high around 1.2380/90.

The overall risk of further decline of the Euro still stays on the bigger time-frame graphs.