14.01.2013 г.

Weekly EUR/USD analysis 14-18

The EUR/USD is now at the same levels that it was in april 2011. That makes a 9 month high. The last week the Euro was up by 2 %.

After the European conference Mr. Mario Draghi made a statement that he sees signs of euro zone economic stabilization, after those statements the volatility rized sharply and the EUR/USD rised with more than 170 pips. There have been also some postive bond auctions in Spain and Italy.

A daily close above 1.3310 confirmed the current medium uptrend. From technical analysis perpsective we see clearly a bullish bias if the Euro is able to sustain momentum.

Even if we have a clear bullish bias we do not recommend deep stops at this moment much below 1.333 for short term traders. As everything depends on the momentum I waited the beginning of the London session in order to publish this weekly analysis.


Despite the fact that the technical analysis is the domain of what you see and not about what you think I advise extreme caution right now. I think that a short term correction is due from those levels and that the market can't sustain momentum easily. I see a possible correction towards 1.30. From that perspective for medium term traders I can recommend either a very short stop just below 1.320 betting for increase of momentum or a deeper stop below 1.30.

Main Weekly Resistence 1.35

Main Weekly Support 1.322, 1.30


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