Daily Forex Analysis July 22, 2011


Although all the economic reports published yesterday where unfavorable for the Euro, it continue to rise because of the EU Economic Summit and the decisions not to let Greece to be bankrupt.

In the USA, all the reports where favorable for the US Dollar, Philly Fed Manufacturing Index had a better then expected results, 3.2, Monthly CB Leading Index increased to 0.3%.

EUR

Fundamental Analysis

Today for the Euro zone will be published the German Ifo Business Climate which might have a slightly decrease to 113.7, the Italian Retail Sales might have a decrease off 0.1% from a previous of 0.4% and also the Euro zone’s Industrial New Orders is expected to have a more weak result then the previous of 0.8%

Technical Analysis

Eur/Usd continued to rise reaching the 1.4400 resistance level, but this resistance can be only a temporary one and we might see the eur/usd at a 2 month high of 1.4700.

Support Levels:      1.4380; 1.4250; 1.4180.
Resistance Levels: 1.4440; 14560; 1.4680.

Moving Averages (5, 20): Buy.
MACD (standard): Buy.
RSI (14): 60 – Buy.

USD

Fundamental Analysis

Due to the fact that there are no economic reports for the US today, it’s price movements might bee very small.

Technical Analysis

USD Index continues to drop reaching the level of around 74.00, but this decrease will eventually stop because it is oversold, still it might go a little lower before it starts to increase.

Support Levels:      73.50; 72.85; 72.50.
Resistance Levels: 74.60; 75.00; 75.70.

Moving Averages (5, 20): Buy.
MACD (standard): Buy.
RSI (14): 39 – Buy.

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