A new week is about to begin and uncertainty, illiquidity and nervousness in the markets remained constant throughout the week.
The G20 meeting is setting the standard to "prevent" the occurrence of economic crises of this nature again. Designing government policies and specific controls on financial institutions. However, little has been said about the solution to this crisis in particular. Nor did we have seen a turning point in the environment in the financial markets ...
Fundamental Analysis
A new low was the week the Euro against the Dollar on Market Forex. While low during this week was not radical when closing in a Euro 1.2594 U.S. dollars as opposed to 1.2717 dollars a week, continues to mark a line downward trend. Bad
economic projections Eurozone and the U.S., recession in Germany, Italy, UK, Spain. The projections for 2009 are shrinking, unemployment rising and is expected that by 2010 the world economy changes direction and restart the cycle of sustained growth.
Our fundamental approach remains: the U.S. dollar is still the main global currency and in this time of crisis, all take refuge in low-risk financial instruments and investment dollars is the principal. And ls leading analysts argued that first the United States should have signs of recovery and then Europe.
Technical Analysis
As we announced last week, once the price of the Euro broke the-line acceleration to the low price was possible to enter a stage of congestion and congestion this stage (unchecked upward or downward) should end when the price cap with the main trend line.
However, when the price is in a congestion phase are very useful technical oscillators, so we did our analysis of technical oscillators:
We see that our technical Stochastic oscillator delivery a clear buy signal, ie the Euro should have a recovery during the week.
The MACD also notes that the price of the Euro should rise
So there may be a price adjustment to the rise of the Euro this coming week. However, we maintain our estimate of the Euro in the long term should continue to decline.
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