Monday, February 21, 2011
Update - Dollar (USD) against EUR
Dollar might be making a Head & Shoulders pattern in EUR / USD weekly chart. It currently seems to be forming the 2nd shoulder but still the formation needs to be confirmed. It would be confirmed if it breaks the neckline on the downside. The black line in the below figure denotes the path it may take and the the move can take it to its previous high against Euro - 1.18 as below the neckline the drop is expected to be equal to 1400 pips = Difference in neckline and the head.
During the past week, USD lost some ground but still is trading at the 100 DMA and is supposed to bounce down from it in the coming weeks. Call would still be towards dollar strengthening also taking into view the rumors that Portugal might need more influx of Euro into the system for its debt repayments.
Monday, February 14, 2011
Update - Dollar (USD) to rally more against EUR
Dollar is still going strong. It touched a high of 1.343 USD per EUR. Its good to book partial profits. It has bounced back to 1.35 USD per EUR. Dollar is expected to rally more against the Euro.
Thursday, February 3, 2011
Update - Dollar (USD) to rally more against EUR
A day of huge movement in EUR / USD. it dropped from 1.385 to 1.36 in line with expectations. The call is still going strong with a few more levels to be achieved. Booking partial profits would be prudent.
Tuesday, February 1, 2011
Update - Dollar (USD) to rally more against EURO
Another day of weakening USD but still near the resistance level (1.38). Re-iterating the same view.
Monday, January 31, 2011
Update - Dollar (USD) against EUR
Dollar might be making a Head & Shoulders pattern in EUR / USD weekly chart. It currently seems to be forming the 2nd shoulder but still the formation needs to be confirmed. It would be confirmed if it breaks the neckline on the downside. The black line in the below figure denotes the path it may take and the the move can take it to its previous high against Euro - 1.18 as below the neckline the drop is expected to be equal to 1400 pips = Difference in neckline and the head.
During the past week, USD lost some ground but still is trading at the 100 DMA and is supposed to bounce down from it in the coming weeks. Call would still be towards dollar strengthening also taking into view the rumors that Portugal might need more influx of Euro into the system for its debt repayments.
Monday, February 14, 2011
Update - Dollar (USD) to rally more against EUR
Dollar is still going strong. It touched a high of 1.343 USD per EUR. Its good to book partial profits. It has bounced back to 1.35 USD per EUR. Dollar is expected to rally more against the Euro.
Thursday, February 3, 2011
Update - Dollar (USD) to rally more against EUR
A day of huge movement in EUR / USD. it dropped from 1.385 to 1.36 in line with expectations. The call is still going strong with a few more levels to be achieved. Booking partial profits would be prudent.
Tuesday, February 1, 2011
Update - Dollar (USD) to rally more against EURO
Another day of weakening USD but still near the resistance level (1.38). Re-iterating the same view.
Monday, January 31, 2011
Update - Dollar (USD) to rally more against EURO
Still trading in the downtrended band near resistance (1.38)
Sunday, January 30, 2011
Dollar (USD) to rally more against EURO
Dollar would rally more against Euro in the coming weeks. After rallying to 1.6 from its lowest level 1.18, it has corrected to 1.36 now but is trading in a down channel where 1.375 was the last resistance which it touched. Moreover, the concerns over the Euro Zone debt haven't completely subsided and it is expected that the US Fed may have to raise the interest rates in the future to fight slowly rising inflation. This would just lead to strengthening of the USD against other currencies.
Opinion: 1.34 and 1.29 are very good support levels for Euro. As long as it doesn't break the channel on upside, its a good candidate to short for the above targets. If it breaks the channel on the upside but doesn't cross 1.42, it would still come down to the above targets. The trend would change only if it trades at more than 1.42.
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