Finotec News Archive - June 22 2009
USD takes full advantage of worn-out Euro
Analyst forecasts about the dollar have become the most scattered in two years, driving up foreign- exchange price swings and increasing risks that trading strategies and corporate hedges will backfire.
Anthony Boyajian 
22 June 2009
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| Long signal | Short signal | |
|---|---|---|
| Buy a break of resistance level at 1.3920 | Sell a break of support level at 1.3800 | |
| EUR/USD | Buy a break of resistance level at 1.4015 | Sell a break of support level at 1.3725 |
| Buy a bounce at 1.3800 | Sell a failure of breaking the resistance 1.3920 |
Fundamental
Analyst forecasts about the dollar have become the most scattered in two years, driving up foreign- exchange price swings and increasing risks that trading strategies and corporate hedges will backfire. Redtower Asset Management, an Aberdeen, Scotland, investment adviser, sees the currency strengthening to $1.16 per Euro by year’s end, from $1.3906 today, as the world economy recovers from the first global recession since World War II. Standard Chartered Plc predicts a more stable economy will weaken the dollar to $1.55 as the Federal Reserve keeps its benchmark interest rate near zero to sustain growth, prompting investors to sell greenbacks for higher-returning assets.
Technical
Technical analysis shows the euro may continue its downtrend as MACD giving us a selling signal by crossing the signal line to MACD line downwards RSI breaks 70% line and is in a downtrend. We have strong supply in the market as stochastic shows us the market movement and Bollinger gives us a bearish signal by closing the candle below the middle band.
EUR/USD (Daily Chart)
The primary tendency form a head and shoulders formation.
EUR/USD (4 Hour Chart)
The pair is in a clear downtrend.
EUR/USD (Hourly Chart)
The Minor trend breaks standard error channel lower level.
Resistance
1.3920
1.4015
Support
1.3800
1.3725
Finotec Analysis Team
22 June 2009
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