Yesterday, on the daily Forex chart, we can see that the Euro ended with a candlestick with little or no tail. Despite that the day before yesterday, the euro ended with a candle showing long tail, it still moved up high. After all, nobody is able to predict the high risky Forex market, is it? All what I do every day is just provide you suggestions for your reference. Now, as regularly, where the euro is going today on 19th Jan. 2012?
Technical Forex Analysis
On the 4-hour Forex daily chart, yesterday the euro was positive, almost trending all the way up. However, it did not bring Forex traders many surprises-that is to say, it did not move as what regularly did, which is a little bit hard for Forex traders to handle. At present, the euro is supposed not to reach any higher in the future.
Fundamental Forex Analysis
The markets are now focused on the Greek government’s negotiations with international creditors over the writing down of its debts. Without an agreement, Athens is likely to default on a bond repayment in March and could then trigger a forfeit of the €130bn bail-out agreed by leaders last year. Eyes are also focused on French and Spanish sovereign bond auctions later today.
As Raghee Horner, chief currency analyst for Interbank FX explains: “The daily EUR/USD has rallied to the swing short zone that is between the 20 period SMA close (aggressive) and the 34 period EMA low all while traders ponder what the odds are that the IMF will get an additional $500 billion to begin lending out (the U.S. has opted out) and whether the bulls have enough momentum behind the stream of positive headlines to make a run at 1.3000.”
Trading Suggestion
Downside risk still remains, the support line I analyze is 1.2806 and the resistance line is 1.2953.
I suggest that Forex traders should observe the 30-minute Forex chart for every tiny movement. Suggestion 1: if the euro drops to the line 1.2832, then Forex traders can consider going long. Suggestion 2: if the euro drops to 1.2806. Go short.
Suggestion 3: if the euro drops and breaks out the line 1.2806, but is not able to reach as high as this, Forex traders can consider going short.
Suggestion 4: if the euro reaches as high as 1.2953, go short.
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