Saturday, June 5, 2010

EUR-USD Technical Analysis - 05 June 2010

Fibonacci Trading: How to Master the Time and Price AdvantageNew Frontiers in Fibonacci Trading: Charting Techniques, Strategies & Simple Applications 
Based on the analysis on Wednesday 02 June 2010 the EUR-USD indeed make the breakout according to all the indicators signals. It happens on Friday after all Euro Zone news was cleared up and left only the strong economic data from the US zone dominated the market. The breakout was expected to land on 1.2080 or 1.2040 but it has gone further until 1.1966 creating a new low for the support.

Approaching the previous major support level at 1.1717 the market is poised to make correction anytime soon. However this confirmation has to be synchronized with MACD and Stochastic indicators signal in all major time frames. At the moment there is no sign of that yet to happen.

This is technical analysis for next week.

Daily Time Frame:
Stochastic = Down
MACD = Down
B.Band = Bottom
Summary: Further bearish continuation

Weekly Time Frame:
Stochastic = Down
MACD = Down
B.Band = Down
Summary: Further bearish continuation
Monthly Time Frame:
Stochastic = Down
MACD = Down
Bollinger Band = Bottom
Summary: Further bearish continuation but it also oversold that might trigger significant correction
Market Position: New low 1.1960 therefore next week has to be some minor correction before major continuation as the market landed on new low ground. Fibonacci correction 23.6% is very likely on hourly chart.

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