EUR/USD will start to the dollar bounce rate against the euro?

Dollar traded near a five-month low against the euro on speculation Central Bank officials will signal this week their readiness to take more credit easing steps.Anthony Boyajian
28 September 2010 print this article

The dollar traded near a five-month low against the euro on speculation Central Bank officials will signal this week their readiness to take several measures for easing of credit.Greenback was near a two-week low against the yen before reports forecast shows U.S. Home prices fell for the first time in four months and consumer confidence rose against the Yen weakened. 14 of its 16 major counterparties as Asian stock losses, boosted demand for Japan's currency as a safe haven. the Australian dollar was close to its strongest level in two years on the prospects of the Central Bank will raise benchmark interest rates next week.

Trading Tactics

A double top pattern could be an opportunity to sell EUR/USD.

A buyer point is on the 1.3520; former opposition is to take the profit on the 1.3640; Pivot point is the stop loss at 1.3410

A selling point is on the 1.3410;Fibonacci 38.2% is the take profit of 1.3290;former resistance is the stop loss at 1.3510

Technical:The euro represents a double top reversal pattern and can start a downtrend.A lower back move could configure a test of 1.3410

To strengthen our analysis; we use many other indicators, starting with the MACD (moving average convergence divergence); MACD crosses the signal line we note down. momentum and RSI (Relative Strength Index) is in a downtrend; Stochastic oscillator is in bearish direction.

* Analysis is for information purposes only and does not constitute advice in any form. trading of financial products provides a high degree of risk to your capital and it is possible to lose more than your original investment.

By Finotecs professional analyst,

dealingdesk@finotec.com

EUR/USD (per hour chart)

Finotec Analysis Team
28 September 2010
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