Thursday, April 1, 2010

EURUSD Cross: Keeping It Simple

Figure 1 is a weekly chart of the EURUSD cross rate.

Figure 1. EURUSD/ weekly

Key pivot points are identified with the large black dots over the price bars. These are areas of support and resistance. The most recent pivot comes in at 1.35447; a weekly close over this level suggests that Euro will gain strength against the Dollar or the Dollar weakens against the Euro. Either way, look for risk assets (commodities and equities) to out perform as the Dollar weakens.

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