U.S. dollar slows down as Euro looks to accelerate
The euro had an uneven performance this past week; but the outcome that really mattered for the shared currency was the progress made against the US dollar
Anthony Boyajian 
30 August 2010
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| Long signal | Short signal | |
|---|---|---|
| Buy a break of resistance level at 1.2780 | Sell a break of support level at 1.2700 | |
| EUR/USD | Buy a break of resistance level at 1.2830 | Sell a break of support level at 1.2650 |
| Buy a bounce at 1.2700 | Sell a failure of breaking the resistance 1.2780 |
Fundamental
The euro had an uneven performance this past week; but the outcome that really mattered for the shared currency was the progress made against the US dollar – its primary counterpart. In fact, EURUSD climbed through the last three days of the week as the risk aversion drive steadied and the greenback saw its appeal as a safe haven diminish. This is not to say, however, that the currency market’s most liquid pair has put in for a definitive reversal. Though the pair did advance, it covered relatively little ground.
Technical
Technical analysis shows the Euro may start to rebound. We can see the demand in the market by using some indicators like MACD which gives a buying signal by crossing the MACD line to the signal line. RSI shows strength in the market. Bollinger gives a bullish signal by closing the candle above the middle band.
EUR/USD (Daily Chart)
The primary tendency breaks the trend line upwards.
EUR/USD (4 Hour Chart)
The pair breaks the standard error channel upper line.
EUR/USD (Hourly Chart)
The Minor trend is in an uptrend.
Resistance
1.2780
1.2830
Support
1.2700
1.2650
Finotec Analysis Team
30 August 2010
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View previous forex signals:
EUR/USD - EUR long-term objectives could see it go further...The Euro finished the week at fresh monthly lows against the US Dollar, briefly breaking below the psychologically significant 1.2700 mark before recovering marginally into Friday’s close.
EUR/USD - Euro runs out of steam as USD expected...With the US dollar advancing for five consecutive days, the euro would naturally tumble for five consecutive sessions. For EURUSD, this decline was the worst performance the market has seen since mid-May.
USD/JPY - Japanese Yen improving as USD takes a setback...The yen traded near an eight-month high against the dollar as signs the global economic recovery is slowing boosted demand for Japan’s currency as a refuge.
