There is great caution on the part of operators to enter positions in the financial markets. We have seen how the illiquidity due to the large uncertainty on the markets to be hit by the news of the bankruptcy of major investment banks in the United States.
While the "price" in the currency markets have not been startled, and the Euro has been appreciated and the yen with a clear upward trend, and this reflected in a simple chart analysis, all voices are recommending no enter the Forex markets with large positions.
Fundamental Analysis Of
has been breaking news that has reached an agreement to bailout U.S. financial sector. The details of this agreement was due to give released Monday. Certainly the stock market opened with a strong rise and a degree of optimism should increase the confidence of the American economy, and with it a rise in the dollar against their peers.
Other financial indicators in the U.S. economy have negative growth expectations have declined as the production of durable goods has been lower than expected.
Technical Analysis
The price of the Euro closed at 1.4586 just above our trend line upward. Leaving the expectations the way you can take. We
our Stochastic technical indicator indicates a clear sell signal, ie go short in the market Forex EUR / USD.
The figure below shows the above.
If the price of Euro breaks the uptrend line would be a very clear signal to go short because as indicated in the chart analysis as indicators. If the price bounces up there would be a signal to go long.
As mentioned, the currency market illiquidity has a large and our recommendation would be not to open big positions, and we think the Euro direction should be lower, because of our technical analysis.
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