Analytical review of EUR/USD with a forecast for Friday 11 June 2010

Technical analysis:

The uptrend keeps on. During today’s Asian deals, the upper limit of the rising price channel from 7 May 2010 was tested.

We should pay attention to that in the result of yesterday’s growth, the European Single currency has broken 100 day exponential moving average, which lies at 1.2088 and now it supports the pair on the way to decline in short-term outlook.

If the downtrend refreshes, the pair will be supported by the levels of 1.2072 and 1.2008.

If the pair moves up further, after the breach of 1.2146, the uptrend can last to 1.2180 and then it can test 1.2225.

Bollinger bands are up-directed, but the trading is driven in the upper part of the channel, which speaks for a possible correction of the pair in the first part of the day. There are not much efforts left, as the market liquidity gradually drops. Now, the mid band supports EUR/USD, which lies at 1.2097.

Today is Friday, and large players after two days growth can start to level off their positions ahead weekend.

MACD is in the purchase area, but it is gradually lowering to zero mark that can indicate the pair entry to sideways diapason of movement.