Finotec News Archive - February 26 2008
Euro continues to lead as Dollar could drop further down.
The euro edged up versus the dollar today after a forecast-beating German Ifo business sentiment survey dampened the case for near-term interest rate cuts from the European Central Bank.
Anthony Boyajian 
26 February 2008
The euro edged up versus the dollar today after a forecast-beating German Ifo business sentiment survey dampened the case for near-term interest rate cuts from the European Central Bank.
The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/USD.
The buying point is at 1.4990; based on a break of a strong resistance.
- Fibonacci 161.8% is the take profit at 1.5231
- Fibonacci 23.6% is the stop loss at 1.4586
The selling point is at 1.4875; based on overbought formation.
- Fibonacci 23.6% is the take profit at 1.4722
- Previous resistance is the stop loss at 1.4930
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the divergences on MACD. 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 overbought area.
The ROC is very important to understand the demand in the market and as we see on the graph it shows us clear divergences. The Stochastic oscillator is in overbought area.
* 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 Daily Chart


Finotec Analysis Team
26 February 2008
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