EUR/USD Forecast

By | March 26, 2013 11:19 am

The EUR/USD pair made high of 1.36 on 1 feb and has been falling mode with Cyprus Bailout and overall economic deterioration of EU countries,  However, we are reaching a fairly noisy area below, and we think the 1.28 level should continue to be a “bottom” to the market for the time being. We have analyzed the chart in 4 hour, daily and weekly time frame which suggests 1.28 should be the bottom for the time being.

EUR/USD 4 Hour Chart

eurusdh4

Fibonnaci Fans has been helpful is finding potential tops and bottom of financial instrument. Applying the same on EUR/USD pair shows EUR/USD has been repecting the arcs line. Yesterday session it touch the bottom of arc and pullback rally has started. Major short covering and value buying will come once it close and sustain above 1.2810.

EUR/USD Daily Chart

eurusddaily

Daily chart we have applied linear regression channels and pair has again found support and bounced from the bottom of linear channel.MACD histogram is highly oversold suggesting relief rally is on cards.

EUR/USD Weekly Chart

eurusdweekly

Weekly charts is forming a falling wedge pattern which is bullish in nature.

 

Longs can be initiated above 1.2880 Tgt  1.2909,1.2947,1.2990 with  SL 1.2863

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