This week, the Euro closed at 1.5932 dollars, almost a record ... The financial indicators of the U.S. economy made a big warning sign to be released the wrong time and the company Fannie Freddie specializing in mortgage loans.
The state's main buyer mortgage debt is unfortunate, implying that not enough capital to cover mortgage losses.
to disclosure of this news the market reacted violently by devaluing the dollar in the FOREX market about 1% in just one day.
The state's main buyer mortgage debt is unfortunate, implying that not enough capital to cover mortgage losses.
to disclosure of this news the market reacted violently by devaluing the dollar in the FOREX market about 1% in just one day.
Fundamental Analysis
think that conditions have not changed, the price of the dollar is still influenced by the price of the dollar, as well as economic indicators of the U.S. economy is showing slight signs recovery, or at least are within the ranges the market expects.
However, the news about Fannie and Freddie is a blow because the "source" of the crisis (mortgage crisis) is not yet resolved.
In Europe, we can say that local economies are increasingly feeling the crisis, and we see countries like Spain that the housing sector is in full contraction (as an example).
For fundamental analysis we see that the Euro price of opposing forces is the following: In favor of a stronger Euro is: Oil and the U.S. mortgage sector indicators, against part for a weaker Euro is the economic weakness in the euro zone. The result of these forces will result in the direction of the trend of the Euro.
Technical Analysis
We can see that the price of the Euro has broken the upper channel resistance of 1.5800, implying that the next stop would be our super historical price resistance and the 1.6000. Viewing
daily chart (see figure below) we see that our technical indicators point to continued upward trend, being half way overbought zone.
It seems inevitable confrontation with the resistance of 1.6000. If the above.
We conclude that we are near the "moment of truth", and a confrontation with the barrier of 1.6000 seems to be inevitable. If the price bounces back (and always watching the oil market) is very possible that the price will return at least the 1.5800 area. If the price exceeds 1.6000 is recommended to go long because it is very possible that the next stop would be the 1.6500.
We conclude that we are near the "moment of truth", and a confrontation with the barrier of 1.6000 seems to be inevitable. If the price bounces back (and always watching the oil market) is very possible that the price will return at least the 1.5800 area. If the price exceeds 1.6000 is recommended to go long because it is very possible that the next stop would be the 1.6500.
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