EUR-USD Technical Analysis - 12 May 2010

It has been 3 days the Euro-Dollar has been going down now since the extended correction on Monday. Now that the current market position is standing at 1.2700 and yet there is no sign of another correction to take charge. My cautious instinct still very much aware of the 50:50 possibilities amidst all major indicators are supporting further oversold position which could slide deep to 1.2458 or deeper to 1.2000. 

I have been scalping carefully for the past couple of days just to take advantage of the minor fluctuation at the bottom. At it proved to be difficult task to scalp when the market has no clear sense of direction, i have to quickly get out whenever possible after making some profits even if it is 5 pips or so.

The previous technical analysis indicators signal was correct as the market choose to reverse back downward after the unexpected overbought correction on Monday. So this is the continuation for the rest of 2 days remaining.

Daily Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: Further continuation is possible

Weekly Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: Further continuation is possible

Monthly Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: Market may choose oversold position

Overall summary: All indicators still support the oversold position, so it is possible that the market still aiming for the 1.2514 previous support level. However on the contrary the market has been downed for 3 days and currently sitting at the ideal support level. In this case the rule of common sense might support the need for correction on Thursday and Friday.

Tomorrow is a good day to decide what will happen on Friday: If the market choose to go down tomorrow then the whole week is bearish. Otherwise if the market is moving up tomorrow then Friday will follow up too. We will see this theory.