Thursday, February 24, 2011

EUR/USD aiming for 1.3860

EUR/USD has been grinding to higher ground for the past few hours, getting into close contact with its daily peak at 1.3818. After the strong rebound from an intra-day low at 1.3700 earlier in Europe, the cross has remained on a steady upward pace, and pull-backs have been shallow. Current price lies at 1.3800, a rise of 56 pips or 0.40% on the day.

According to Fan Yang, Chief Technical Strategist at FXTimes: “The 1H chart shows the momentum remaining bullish with the RSI above 40, however a bit of a lost in momentum reflected by the bearish divergence. 4H chart does not even show bullish momentum, but the RSI did remain above 40, and being above 60 reflects bullish bias. If the market breaks above the current target of 1.3860, we can see the RSI reach above 70 for a bullish momentum breakout signal”.

“The daily chart shows the immediate target above 1.3860 is 1.3980, 78.6% retracement level, and a declining trendline, which might actually be lower, close to the 1.39 level, so anticipate resistance at this level as well. Above this 1.40 area, 1.4280 is our next target (Nov. 2010 high). For the bearish scenario, a decline back towards 1.3550 can be expected if the market breaks below 1.37, but a more significant bearish scenario only opens up below 1.34”.

source: http://www.fxstreet.com/

41 comments:

  1. such subtle changes can affect us greatly

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  2. Just how intricately linked are these two currencies? They don't appear to be competitors inasmuch is they seem to be conjoined twins.

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  3. The USD is either dropping or AUS' economy is getting a lot better. We're above a 1/1 ratio now

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  4. If the euro goes down a bit more, I'm gonna go shop in Germany ;)

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  5. And how are we doing with the pound?

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  6. it will be interesting to see how the EUR/USD stays when the conflicts in Arab counties solve (if they do)

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  7. With the recent uprising in North Korea, this will probably change.

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  8. I started investing in currency. Feels good man.

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  9. You have to watch these markets a lot to get the best buy / sale rates.

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  10. I'm on my way to europe now!!! look for some $$$ your way

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  11. thanks for the update. this is the kind of thing i need to be paying attention to.

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  12. don't whether the effect is really that big.. i didn't notice it over the past couple of years :D

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  13. I'm just curious how much of an impact all of the protests and revolutions are going to have on the markets in the months to come.

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  14. Thanks for the information as always.

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  15. This blog is perfect for me! Me and my friends were talking about making a little money by trading currency, this'll be perfect.

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  16. The gas prizes are going even higher?!?

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  17. Glad to see the euro/usd climb

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  18. followed you! nice site, love whats going on here! follow me back and check out my blog

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  19. Buying stuff from ebay from america is really cheap with the dollar 'n all

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  20. I can't wait to see...(kind of)...how the global market is going react to the conflicts in Libya and elsewhere.

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  21. I wish this was the rate when I was on my honey moon! we were paying at least 1.60 coming from the states to the US.

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  22. The stock market also went down quite a bit after the Libyan Rebellions.

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  23. This will likely have a carry over effect on the other major currencies.

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