Saturday, May 8, 2010

EUR-USD Technical Analysis - 08 May 2010

The first ADP non-farm payroll data release didn't stop the EUR-USD to slide further down to its previous support level at 1.2514 but the Non-Farm Employment Change data release did cause the market to make minor correction upside to 1.2727. In the long-term market view we can see that the market has already touched down on the previous support level, which leads to decreasing in the bearish trend sentiment in the coming weeks to come. Be cautious not to get caught at the bottom when the market start to lift off for the upward trend reversal.

Anyway this technical analysis will be for the coming week:
Daily Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: The market short-term indicator still have the gas to go down. Oversold to 1.2367 is possible

 
Weekly Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: Intermediate-term indicator also support for oversold position.

Monthly Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: Support oversold position.

Overall summary: All indicators signals from short to long term support the continuation of bearish trend which could lead to market oversold position. However i would prefer to take high precaution on this area because it can be very tricky. Reversal is has no mercy and continuation  can be painful to see.

Best Practice: Wait for the first reversal candle and check at least both MACD and Stochastic in weekly time frame both are moving up.

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