Monday, April 26, 2010

EUR/USD 21/200-Week Dead Cross

While the Greek debt problems remain a key theme the EUR/USD keeps sustaining its losses.

Here is a weekly chart where there are a few important facts about the price action.

First is the down-trend channel that is taking shape and it is just making the picture more clear. The levels to watch on the down side are the Lower Bollinger Band at 1.3028 which is in confluence with the major psychological 'Big Figure' 1.30 and lower are the April '09 lows at 1.2885.

Second there is a 21/200-Week MA Dead Cross which is a bearish signal just confirming the present price action.

All that point to a sustained USD strength ahead and also might suggest that USD/CAD might be in a bottoming pattern around the Parity level.

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