By Forex Signs, Inc. – The EURUSD is hoping for a reversal today in favor of the greenback. Recently, the US dollar had relapses against euro. At the opening of the session today, the pair was not able to hold its uptrend momentum at H1 chart as the trend went downwards at resistance level of 1.3418 then played sideways at 1.3348 and 1.3357. Last Friday, the pair enjoyed an uptrend and reached a price level of 1.3419 from 1.3216. RSI (14) shows that the pair started at a bullish momentum from Friday’s closing at level 79.0419 then it gradually slowed down until it reached the neutral level of 59.8802. The trend is likely to go further downward as the %R (14) already reached the overbought scale at -84.02 level. However, there is a chance that the downfall is just a correction of 23.6 percent. If the pair can break resistance then chances are that the downtrend is just a reversal period. Anyhow, looking at another chart which is the H4, it is advisable to sell the pair because the trend has just started going down.
Lingering Euro Debt Crisis Could Weigh In Again On Its Currency
For the upcoming European Session, the strength of the Euro will hinge on the US dollar’s weakening value due to last week’s disappointing employment figures. The Euro’s strong rally last week can be attributed to the US jobless rate jumping to 9.8%, the highest since the recession took place, while the ECB’s purchases of Irish and Portuguese debt also helped the Euro. Although this upcoming session would be light in economic indicators, investors are looking at the next Euro-Area Country that would require assistance as this could be the only market mover for the Euro.
Sentix Investor Confidence, the only European indicator to be released this session, is expected to drop to 13.2 points after 2 months of consecutive better than expected numbers. This might have a small impact on the Euro, but expect the Euro to be volatile as Fed Chairman Ben Bernanke might talk about another round of quantitative easing which might increase the risk appetite for the Euro.
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