Friday, December 26, 2008

EUR-USD Technical Analysis

As oppose to previous analysis what we are witnessing now on the EUR-USD is simply an extra-ordinary phenomena that happens in forex. This is no surprise, that's why forex is more riskier than any trading even in comparison to stocks or anything else.

The pair should have been moving downward further based on the technical indicators position for MACD and Slow stochastic in monthly time frame. Even if it is going up it should be residing at its normal resistance level at 1.3699 but instead it goes up all the way to 1.4730.

Another failure of technical analysis that we all witnessing here is not uncommon in forex. And in fact for those who have the best discipline in trading could be losing as well on this kind of situation. It is totally super correction with an extreme ovebought position.

So from time point onwards should we expect another month of upward movement. Perhaps yes, however technical analysis still showing that the tendency of downward is more likely than upwards. Therefore i strongly voted for the down trend continuation movement.

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