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Euro Reverses Week to Up; Charts indicate More Upside to Follow

Discussion in 'Forex Daily News & Outlook' started by forextrends24, May 22, 2010.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The Euro finished the week higher, but more importantly posted a closing price reversal bottom on the weekly chart. This pattern suggests that this week’s short-covering rally could be far powerful than previously estimated.

    The short-covering rally which began on Wednesday continued in the Euro on Friday ahead of Germany’s vote to approve the massive deal to save the common currency and keep in check the Euro Zone debt crisis.

    Technically, the current daily closing price reversal pattern usually triggers a 2 to 3 day rally. This part was confirmed by the three day rally, however, the upside target is usually a 50% to 61.8% retracement of the last leg down. Based on the last range of 1.3342 to 1.2143, the retracement zone is pegged at 1.2742 to 1.2884.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
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