Forex Depth Analysis: EUR/USD

Daily Forex Technicals | Written by Finotec Group | Dec 23 08 09:41 GMT |

Euro looking to profit ahead of bad housing data in U.S. The dollar weakened for a second day against the euro before a government report that economists estimate will show sales of new U.S. homes declined to the lowest level in more than 17 years. The euro may rise to $1.50 in the next two weeks based on trading patterns, said Pak Lai Ng, a technical analyst at Forecast Singapore Pte. The 15-nation currency is poised to gain as its relative strength index is above 50, Ng said, showing the euro has the momentum to continue this month's 10 percent advance. The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/USD. The buying point is at 1.3967; based on failure swing bottom formation. Fibonacci 23.6% is the take profit at 1.4420 Previous support is the stop loss at 1.3620 The selling point is at 1.3590; based on a break of a strong support level. Previous support is the take profit at 1.3270 Fibonacci 61.8% is the stop loss at 1.3920 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. 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 a clear uptrend. The ROC oscillator is very important to understand the demand in the market and as we see on the graph it is in a bullish direction. The Momentum oscillator breaks equilibrium level upwards. * 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.