Forex Depth Analysis: EUR/USD

Daily Forex Technicals | Written by Finotec Group | Dec 05 08 09:29 GMT |

Interest rate cut rewards euro against the dollar. European Central Bank President Jean- Claude Trichet is under pressure to outline a plan to revive the euro region's economy should he be 'trapped' into pushing interest rates closer to zero. Even as Trichet delivers the largest round of rate cuts in the ECB's history, he hasn't spelled out a specific approach should conventional tools fail to head off deflation While he yesterday acknowledged for the first time that unorthodox measures are an option, economists warn the lack of detail is a concern. The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/USD. The buying point is at 1.2751; based on a strong demand in the market. Previous resistance is the take profit at 1.2950 Fibonacci 23.6% is the stop loss at 1.2645 The selling point is at 1.2590; based on a break of a strong support. Previous support is the take profit at 1.2340 Fibonacci 38.2% is the stop loss at 1.2705 To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal line and is pointing upwards. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in an uptrend. The ROC oscillator is very important to understand the demand in the market and as we see on the graph it breaks the zero level. The stochastic oscillator crosses %D line and is in a bullish direction. * The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text. Finotec Group Inc. http://www.finotec.com/ Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.