EURUSD projects a bearish reversal signals
Resistance Levels | Support Levels |
R3: 1.3186 | S1: 1.2276 |
For the coming week, the EURUSD is projected to show a bearish reversal as its 5-day EMA and 9-day SMA are now crossing over, indicating a reversal for the coming week. In addition, its RSI (14) suggest that prices are now overbought which confirms that a reversal is about to take place. Further, prices arestill in the range of 1.3000 and currently moving at 1.3020 and already penetrated its key resistance line of 1.2731 under the daily chart. Thus, expect a bearish reversal trend to continue until next week as prices are now overbought, it might reverse slightly in its price action. Its RSI (14) indicates that prices are now in the overbought levels, however, however the strong traction today might cause prices to be saturated and reversed. The MACD (9, 12, 26) alo indicates that prices are now moving near the bullish divergence.
Meanwhile, the strong signals shown in its Technicals are not in conformity with the negative signals shown in its fundamentals as manufacturing data across the Euro-zone is showing negative signals in its reading and remains in the contraction territory. In addition, the Italian government revised down its growth projection and predicts a contraction of 2.4% in 2012, coming from its forecast of 1.2%decline and 0.2% contraction in 2013 from the expansion of 0.5%. However, it added that it would still manage to balance its budget next year. Separately, the Greek coalition parties again failed to agree on a major new austerity measures that were promised for this week. In addition, the bond auction in Spain sold its ten and three government debts for 4.799 billion euro, above the full targeted amount of 4.5 billion euro.
Thus, the negative signals shown in its fundamentals, might suggest that a sell position is recommended for the coming session.