EUR-USD Technical Analysis - 14 May 2010

 

The previous technical analysis on 12 May 2010 proved to be correct again as Thursday market fall consequently Friday follow the same. The theory was no coincident as it follows the strong bearish signal from the MACD and stochastic in all major time frames heading downward direction. Currently stand at 1.2468 and all indicators still pointing down the EUR-USD is poised to move further down until 1.2340 where the last previous support level in monthly time frame.

On the other hands this week trading session is closing at the end of today. Traders are considering to harvest their last trade profits of the week, which could lead to significant correction.

So this continuation of technical analysis will be for the coming week trading session based on MACD, Stochastic, Bollinger Band indicators combination again. These 3 indicators are the main tool that we use in this blog for all technical analysis.

Daily Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: All indicators support further continuation of bearish trend in the short-term trend

Weekly Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: All indicators support further continuation of bearish trend in the inter-mediate trend

 Monthly Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary: All indicators support further continuation of bearish trend in the long-term trend

Support/Resistant Level: The previous 1.2514 support level has been broken to reach the new support at 1.2436. This one good sign for correction to take place.

Overall Summary: The EUR-USD overall indicators still favor strong bearish trend.