Friday, November 28, 2008

forex EUR-USD Technical Analysis

So we the eur-usd did not experience overbought after all and we can see it now being retrace to the middle band of daily time frame. This should be the ideal position where it should be making correction. However as i always said before we do not want to speculate things in forex where overbought/oversold may happened anytime without warning. A possible move back to the bottom band is always open wide.

4 hourly time frame forex eur-usd chart candlestickHowever from the current movement patterns that the pair is experiencing right now, it could be moving sideways to form three big mountains and troughs. This has kind of patterns have been recorded in the past and is proven repeatedly happen.

daily time frame forex currency trading chart candlestickOn the fundamental side of it let's take a look how the Euro zone and US economic data has affect the market to move that way. The fundamental is the caused why the market move randomly and frequently go for overshot.

JPY
Housing Starts y/y
19.8%
54.2%
EUR
CPI Flash Estimate y/y
2.1%
3.2%
EUR
Italian Prelim CPI m/m
-0.4%
0.0%
EUR
Unemployment Rate
7.7%
7.6%
CHF
KOF Economic Barometer
-0.05
0.28
GBP
CBI Realized Sales
-46
-27
CAD
Current Account
Refresh for Actual Release
6.8B
CAD
RMPI m/m
Refresh for Actual Release
-7.2%
CAD
IPPI m/m
Refresh for Actual Release
-1.2%

Do you notice actually the fundamental economic data from forexfactory website shows the overall for Eurozone is slightly poor for today. However the market make correction significantly because it follows the long-term trend movement which is still going down.

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