Analysis for EURUSD 3 – 7 May 2010

Previous Week 19 – 23 Apr

O: 1.3475 H: 1.3522 L: 1.3201 C: 1.3373

Last Week 26-30 Apr

O: 1.3362 H: 1.3415 L: 1.3113 C: 1.3312

Weekly

Daily

Hourly

Recap:

• Last week, I mentioned that if 1.32 is broken, we can expect to see a leg down to 1.3120, 1.3002. (0 = 1.2328). The low of the week was 1.3113.
• 1.3386 was broken on Monday but unsustainable.

Fundamentals for the week:

• We have Japan on a 2-day holiday so the Asian session is expected to be slow.
• There are very important news arising on Thu and Fri with Thu being the UK election day, so markets are expected to be rather volatile.
• Merkel has her elections on 9 May (Sunday) and Greece needs $ by 19 May so this might shake this pair considerably.
• Spain and Portugal is another story on top of Greece so any talks will send this pair in a swing.
• Politics as always, is a dirty game so stay safe.

Expected for the week (techies)

• We have a lower low on this pair and it failed to stay below 1.32 which is a key area for more bearish sentiments
• We closed at 1.3312 which is still not good enough for more buyers to come in.
• The key area for this week is 1.3430 = 1.35, 1.3593
• Below 1.32 again and we’ll probably see 1.3085.
• See charts.

Weekly numbers

1.3740 (38.2), 1.3593, 1.3430, 1.3200 (23.6), 1.3085, 1.2964

Fundamentals:

Mon – Jap & UK Hol/Euro/NY

Tue – Jap Hol/Euro/NY

Wed – Euro/NY

Thu –UK Election/Euro/NY

Fri –NY