Rebounce of EUR (2011-02-15 EURUSD analysis)

Hang Seng Index bounced back a bit yesterday, but yet to be above the red up-trend line. It is really uncertain how HSI will move. Nevertheless, there will be a strong resistance power at the up-trend line.

Today I am going to post my analysis on Euro.



Above is the 4-hour chart of EUR/USD. We can see that it has been falling within the two red lines. It is currently testing the lower line; therefore, we can see there is a buying power when EUR reached this line.

MACD is falling to a new low level, indicating that the momentum for drop is getting weaker.

We could expect a rebound in EUR. It is a good time to get some long positions for EURUSD. Stop loss would be confirmation of breakdown of the lower line.