Forex Quebec

Daily maximum: 1.3380

Daily Resistance: 1.3382; 1.3422; 1.3485
Daily Support: 1.3299; 1.3228; 1.3103
Daily Bias: Strongly bullish

The EUR / USD pair is breaking its downtrend channel, though it is not strong enough. We cannot confirm the change of trend yet considering that the strong resitance level 1.3130 is  fractal crucial. It is expected to put pressure on the pair but only a weekly close above 1.3100 will confirm the bullish trend for the next few days.

Therefore, we recommend Buy-positions above 1.3100 with a short-term objective seen at 1.3365.

The MACD indicator range and are showing bullish signals.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

The spot rate punctured the intermediate resistance of its medium term  bullish channel at 1.3210 leading to acceleration. A pull back at these levels is expected  before a resumption of bullish trend and reach the upper limit of its channel at 1.3420.

Technical indicators provide sell-signals but are approaching the oversell zone supporting the assumptions of a pull back. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

According to previous events, the market indicates a bullish opportunity at the levels of 1.3210 with the 1st objective of 1.3270, then 1.3290. A break through 1.3190 will chnage this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

EUR/USD

The euro-dollar pair has broken its uptrend line in the short-term and is showing bearish signals, if we look at the graph of four hours, the euro has formed a technical figure - double top. If the pair manages to close the quote of today, down from 1.3400, it will be a proof that it will continue until the fall to 1.3200 or 1.3150 to coinside with the 31.8% fibonacci retracement.

As shown on the chart, the Gap that I leave the week of Feb. 20 has not yet closed, therefore, I believe that before continuing to rise, you will need to cover this gap.

MCD indicator shows correcion imminent bearish sentiment.

Performed by Gerardo Porras, Analytical expert
InstaForex Companies Group © 2007-2012

Tip (s):

R3 and S3 are good indication of the maximum range for extremely volatile days but can be exceeded occasionally.

Pivot lines work well on sideways markets, as prices most likely range between the R1 and S1 line.

In a strong trend, price will be lower than a pivot point line and will keep going.

If there is significant news to influence on the market, price may go straight through R1 or S1 and reach even R2 & R3 or S2 & S3.

Time Frame: H1.

Drag your Fibonacci retracement levels from the lower to the higher levels of the last week from the 20^th of February to the 24^th of February, 2012 in order to determine the low and high price.

Average = (Higher - Lower) / 2
Average = 1.3329

• Range was: 313 pips.
• The value of 50% Fibonacci retracement levels is: 1.3329.
• 1.37 a strong resistance will be formed.
• 1.2830 a strong support will be formed.
• Volatility is 417.2 so the market called for a high volatile level.
• It should be noted that the price is still trapped between 1.30 and 1.35.

Observation (s):

• If the strength of the trend for pair is an uptrend, then the strength of the currency is as follows: EUR is an uptrend and USD is a downtrend.
• Most of traders use the Fibonacci retracement to determine accurate psychological level of support and resistance.
• Volatility Formulas: Variation = Average * (Higher - Lower).

Performed by Mourad El Keddani, Analytical expert
InstaForex Companies Group © 2007-2012

The spot rate is currently testing the upper limit of its medium term bearish channel in 1.3290 and seems to initiate a decline. However a break of these levels would free up significant potential and initiate a bullish trend.

Technical indicators do not provide clears signals but until that the resistance is not broken the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.3290 with a 1st objective of 1.3350, then 1.3380. A break in 1.3270 would invalidate this scenario.

Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2012

"Euro weakness is likely to stay with us. A bearish EUR/USD call is starting to work out as the market values European Monetary Union tail risks more realistically"

Traders' sentiment

Long position opened

Short position opened

by Dukascopy.

"In this sort of environment it does not take much to knock the euro, it is in an extremely vulnerable position"

Traders' sentiment

Long position opened

Short position opened

by Dukascopy.

Daily Resistance: 1.2776; 1.2823; 1.2904.
Daily Support: 1.2648; 1.2591; 1.2520.
Daily Bias: Strongly bearish.

by Dukascopy

The European currency is now trading below the level of $1.28 per euro. The price has fixated confidently behind the 1.30 level and is trading in the lower ranges. On January 6 a new point of the local price minimum – 1.2664 – was formed; now this point should be considered as the second support level. As to the current state of the market, the price is definitely trying to push off the 1.2800 level and is ready to fall down to 1.2715. The possibility of the decline is confirmed by the Stochastic oscillator in a 4-hour graph where the oscillator lines demonstrate overbought condition.

Levels:

Resistance 3 – 1.2945
Resistance 2 – 1.2870
Resistance 1 – 1.2800
Support 1 – 1.2715
Support 2 – 1.2664

Performed by Georgi Navrusbeckov, Analytical expert
InstaForex Companies Group © 2007-2012