A new week is about to begin and volatility in financial markets along with high liquidity (ie very few people investing) is the constant.
world's stock markets have yet to find their way to make a solid upward trend for retrieving historical losses have been in recent weeks.
Forex Market, for its part has also been shaken by the illiquidity causing many businesses can not be made. And especially the Forex market EUR / USD did not show a high volatility during the past week the Euro closing at $ 1.3408 versus the previous week in 1.3394 - making a difference almost negligible.
Fundamental Analysis
As we have mentioned several times the currency of a country and no area is more than the economic health of this compared to another area or country. That is, when talking about the Euro and the Dollar compared the economic situation facing each other. At this point both economies show great weakness and is common to hear "bailout" on both sides of the Atlantic. Therefore we predict that major changes in this market should not occur in the short term.
add great liquidity, property main in times of crisis when investors "hide" their money and take refuge in low-risk financial products such as Treasury Bonds U.S..
All this leads us to predict that the market should behave plan, as the same volatility of the NYSE the European stock markets suffer. Still
argue that the Euro should continue to weaken against the dollar because interest rates in the euro area still has much room to lower, while the Fed at a rate of 1.5% per year seems to be that you are on your floor
gives us clear trend signals. At this moment the Euro is in a large downward trend in our chart analysis, however, the line broke down acceleration (see article above) with which he did enter the price in a congestion zone.
As the days pass the Euro price will be faced with two lines of resistance, one that should draw earlier this week in which the price of the Euro - the breaks - should be strengthened or else it could send down. Then, it would be the main trend line that if were to break would be a clear sign of change in trend.
Our technical indicators support our view that the market is waiting, we appreciate our RSI indicator with a slight negative slope indicating that the price is still in a downtrend, but with great weakness.
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