Finotec News Archive - February 20 2008
The U.S. dollar recovered after two week low against euro.
The dollar was little changed before a government report that may show U.S. inflation accelerated, giving the Federal Reserve less room to lower interest rates.
Anthony Boyajian 
20 February 2008
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The dollar was little changed before a government report that may show U.S. inflation accelerated, giving the Federal Reserve less room to lower interest rates.
The currency recovered from a two-week low against the euro after an industry survey showed confidence among U.S. homebuilders had the first back-to-back monthly increase in almost a year.
The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/USD.
The buying point is at 1.4760; based on a break of a strong resistance.
- Previous resistance is the take profit at 1.4840
- Fibonacci 50% is the stop loss at 1.4705
The selling point is at 1.4711; based on a failure formation.
- Fibonacci 50% is the take profit at 1.4647
- Previous resistance is the stop loss at 1.4756
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal and is pointing downwards. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a downtrend.
The momentum oscillator is very important to understand the strength of the market and as we see on the graph it is in a bearish direction with a break of the equilibrium level. The Stochastic oscillator breaks 80% line and continues to go lower.
* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.
By Finotec’s professional analyst,
Tony B.
dealingdesk@finotec.com
EUR/USD Hourly Chart
Finotec Analysis Team
20 February 2008
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