USD runs out of steam as the euro is expected to continue

This suggests that U.S. interest rates is likely to remain lowTammy Wally
18 October 2010 print this article

On Friday morning, EUR/USD traders count to the publication of a speech by Chairman Bernanke, the Fed. Bernanke stated that a low level of inflation was an important issue. This suggests that U.S. interest rates is likely to remain low for a very long period.Bernanke traveled even the question of a possible amendment of the wording to indicate that the Bold intends to keep rates lower, longer than the markets are expecting.Cross saw THE EUR/USD at up to the range of 1.4150, following the publication of the speech. data of United States was mixed with slightly lower-than-expected inflation, but the NEW Bold investigation and retail sale came out better than expected. Mid-morning American data (Michigan consumer confidence and Business inventories) was too close to the expectations that have no impact on EUR/USD trading.

A clear uptrend could be a possibility to buy EUR/USD.

A buyer point is on the 1.4101;previous high is the take profit 1.4150; formerly support is stop-loss 1.3.900

A selling point is on the 1.3770;previous support is the take profit of 1.3635;The pivot point is the stop loss at 1.3860

Technical: Euro breaks the former resistance level upwards and can continue the great uptrend.

To strengthen our analysis; we use many other indicators, starting with the MACD (moving average convergence divergence); we notice the histogram MACD has a bearish direction; RSI (Relative Strength Index) and the momentum is in an uptrend; stochastic oscillator provides an offensive signal.

* 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

Finotec Analysis Team
18 October 2010
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