Weekly Forex Signals

Euro long-term objectives could see it go further down against US dollar

Fundamental

Investors are pulling cash out of Europe at a record pace as central banks slow euro purchases, jeopardizing its status as a substitute to the dollar as the world’s reserve currency. Last year, policy makers loaded up on euros, while analysts at Barclays Plc in London and Aletti Gestielle SGR SpA in Milan predicted central bankers would make good on threats to reduce the greenback’s dominance. Now the euro is down 8.4 percent since Nov. 25 in its fastest slide in 10 months amid concern that cash-strapped countries like Greece won’t pay their debts. Billionaire investor George Soros said Jan. 28 that there’s “no attractive alternative” to the dollar.

Technical

Technical analysis show us the euro may continue its downtrend as MACD gives us a selling signal by crossing MACD line to the signal line and RSI breaks 30% line downwards. Bollinger gives us a bearish signal by closing the candle below the lower band.

Trends

Primary Tendency (Daily Chart): The primary tendency is in a strong downtrend.

Secondary Tendency (Four Hour Chart): The pair breaks Fibonacci fan lower line.

Minor Tendency (Hourly Chart): The Minor trend cannot break standard error channel middle line upwards.

Resistance

1.3930
1.3990

Support

1.3830
1.3750

Technical Indicators

Crossing of two moving averages and closing price of the candle is below the short term moving averages.

Histogram MACD gives us a bearish signal.

RSI (Relative Strength Index) breaks 30% level downwards.

Bollinger gives us a bearish signal by closing the candle below the lower band.

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