EUR-USD Technical Analysis - 22 May 2010

After a strong oversold position and Germany action to banned short selling on the Euro currency at last EUR-USD went for a correction until 1.2600 last Thursday. However on the following day the market was very calm with small volatility fluctuation within 15 minutes time frame.

Currently standing on 1.2569, we can conclude that the pair is on its ideal level of correction in general perspective. A more precise level should at 1.2672 previous high correction. Therefore by next week the pair either going down right away or first it must go up to 1.2672 before going down. We present our overall forecast by the following technical analysis.

4 Hourly Time Frame:
MACD = UP
Stochastic = UP
Bollinger Band = Top
Summary = 4 Hourly indicators support continuation upside which may hit back at 1.2672

Daily Time Frame:
MACD = DOWN
Stochastic = UP
Bollinger Band = Middle
Summary = Indicators moving in contra-direction support the balance of up and down. However MACD is stronger therefore daily time frame support downward direction

Weekly Time Frame:
MACD = Down
Stochastic = Down
Bollinger Band = Bottom
Summary = Indicators support continuation downtrend.

Overall summary: The strength for downtrend is still strong, last week correction is consider minor compare to the volume of the downtrend. All major time frame support continuation of bearish, but before it move further down there is possibility the pair might revisit the 1.2672 previous correction level. That is around 100±