Finotec News Archive - May 05 2008
U.S. Dollar could drop as euro seems to regain strength.
The U.S. dollar was a shade weaker on Monday but held on to most of last week's gains, supported by labour market data and speculation the Federal Reserve will not need to cut interest rates again.
Anthony Boyajian 
05 May 2008
Print this article
Subscribe to RSS
| Long signal | Short signal | |
|---|---|---|
| Buy a break of resistance level at 1.5500 | Sell a break of support level at 1.5365 | |
| EUR/USD | Buy a break of resistance level at 1.5645 | Sell a break of support level at 1.5340 |
| Buy a bounce at 1.5365 | Sell a failure of breaking the resistance 1.5500 |
Fundamental
The U.S. dollar was a shade weaker on Monday but held on to most of last week's gains, supported by labour market data and speculation the Federal Reserve will not need to cut interest rates again.
The dollar firmed on Friday after U.S. payrolls fell in April by a smaller-than-expected 20,000, while the jobless rate actually dipped to 5.0 percent.
“The drop in the unemployment rate has strengthened the market's conviction that the Fed is done," said Darren Gibbs, an economist at Deutsche Bank.
Technical
The Euro may start its uptrend again as we can see strong demand in the market, based on technical indicators like RSI, which is giving us a clear bullish signal, MACD breaks the equilibrium level and is pointing upwards, Bollinger gives us a bullish signal by closing the candle above the middle band.
EUR/USD (Daily Chart)
The primary tendency breaks the trend line with a strong retracement.
EUR/USD (4 Hour Chart)
The pair is in oversold area.
EUR/USD (Hourly Chart)
The Minor trend shows us a failure swing bottom formation.
Resistance
1.5500
1.5646
Support
1.5365
1.5340
Finotec Analysis Team
05 May 2008
Print this article