What are the next perspectives for the dollar? What will the New Year of 2010 start with concerning the dynamics of the major pairs of currencies? Hereafter the EUR/USD pair is explored from the point of view of the technical analysis, and the most important levels of support/resistance together with the most probable vector of dynamics are determined.
From the beginning of December the pair was decreasing having failed to get over the significant form the technical point of view level of 1.5125\50. This decrease was still evaluated as the correction to the principal trend, it’s impossible to speak about its reverse yet. The sector of 1.4525\50 serves as a powerful support level having been made by the cross of the edges of two equidistant channels and Leonardo Pisano’s levels. The center of the structure having been formed from September, 9 2009 (just a symbolic date) was defined; concerning it the previous prices find their reflection in the future (mirror-reflection). The RSI indicator (9) is next to its minimal values – that exactly adds the arguments in favor of the growth.
Conclusion: end of 2009 – beginning of 2010 the further growth of the common European currency as for the US dollar from the current levels will be observed; the potential targets of it will be 1.5800 and 1.6000 in the event of the successful getting over of 1.5125.
The alternative scenario will be the fixation lower than 1.4525 (the red horizontal line) – in this case the level of 1.4230 will open, and the technical situation will alter in favor of further decrease.
Analysis prepared by:
Maxim Dmitrievsky
Forex4you analyst