EURO/USD-------TO BE SETTLED NEAR 1.25000 NEAR TERM ??

EURO/USD H4 with Ichimoku Chart

Daily Chart

Trading Analysis


Fed  Bernankes speech highlighted 2 key points; purchases of long term assets are his favourite option for additional easing; and the central bank will not breach its commitment to price stability. The preference of additional asset purchases over communicating a longer period of exceptionally low rates and reducing interest rate on reserves allow for the possibility of renewed expansion of the Feds balance sheet. I therefore envisage that  there  was  NO REASON for USD to rise when Bernanke keeps the door open for QE(That means printing more Dollars via printing presses)






On H4, we observe that for the past 14 trading days, this currency pair moved within the range 1.2850-1.2600 for the past 12 Trading Days.


On the Downside, on H4 with Ichimoku chart , ITS IMMEDIATE SUPPORT IS SUPPORT 2, at  1.2675. Breaking this level may send this pair down to its next support near 1.2590, its recent low, follows by 1.2431.(61.8% Fibo)


On the upside, successful breaching the 1.2850 ,its 38.2% Fibo, also near the Ichimoku Cloud Top Resistance(on H4)., may resume its reversal toward the 1.3000 level. 


This currency pair now is negatively biased /with bearish sentiments.But upside should be limited by 1.3000 resistance and bring fall resumption. Below 1.2600 will target 61.8% retracement of 1.1875 to 1.3330 at 1.2431 next. 




Further down the road may send this pair to retest the 1.2000 level( 61.8% Fibo between 1.6040 to 0.8223, on a much longer prospectives)