EURUSD – All Set for 1.40

EURUSD technical analysis points to likely rally up to 1.4000. On the weekly chart, price broke and closed above the upper minor trendline and now looking to head further up towards another trendline. If price continues to move up then we have next resistance at 1.3950 area.

Daily charts shows price breaking upward and found resistance at 1.3830 last week. Price then came down all the way back to 1.3715 to re-test the trendline breakout and prior support.

EURUSD Fundamental Analysis

On the EURUSD fundamental analysis side, ECB meets March 3rd and any hawkish comments will drive EURUSD closer to our target. Rising fuel prices is likely to cause further rise in inflation, which could lead ECB to start increasing interest rates ahead of Federal Reserve. ECB has so far kept the rates low at 1% and Fed at 0-0.25%

Last but not least, NFP numbers comes out later in the week as well.

EURUSD Trading Plan

For now look for long on any dips and if price breaks and closes below 1.3700 then it could lead to a reversal and drive price even lower.

Have an alternate point of view? Leave a comment below.

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5 Responses to “EURUSD – All Set for 1.40”

  1. Rob 28 February 2011 at 1:56 pm #

    Not an alternative view point but a comment on the stupidity of the ECB. Fighting COST PUSH inflation with higher interest rates has got to be the ultimate in stupidity. Especially with the state of the PIIGS economies. Me thinks the Germans are going to rule europe without firing a shot, something Hitler could not achieve even with force.

    • FirePips 28 February 2011 at 2:30 pm #

      In short, by increasing Interest rates Reserve Banks aims to cut consumer spending which in turn helps in reducing Inflation. I am sure you already know this but I thought I mention it for other readers.

      • sandeep singh 28 February 2011 at 2:46 pm #

        pls tell me about euro,usd

    • Martinigue 28 February 2011 at 6:06 pm #

      Rob, Euro was actually designed to support the dominance of Germany as the Europe's strongest economy; and it is not hard to imagine the frustration seeing the tool meant to help you being bastardized by your neighbors whom you invited to use it as well, but who were too lazy to learn how to work it and too lazy to work in the first place …..:-)

  2. jamaljber 2 March 2011 at 3:34 am #

    good work
    thank you so much

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