Daily FX :: “Dollar Bull Is About To Lose Its Horns”

EUR/USD – Euro bulls are finally getting a chance to exalt their revenge
upon the greenback bulls as the dollar long lost momentum when the pair
approached the 1.2150 level. As the euro bulls finally getting their
chance to take back some of the territory lost to the dollar, their
advance will most likely will be capped by the 1.2700-30 range a strong
resistance which marked the previous 2005 low. Also traders should expect
quiet a few exotic option strike barriers to be placed around the 1.2500
figure, making it a perfect target for the institutional traders to aim
for. Indicators signal a maturing trend with ADX (DMI) on the daily chart
is at 38.55. Stochastic remains extremely oversold on the daily chart at
9.05, which is indicative of a strong trend. The Stochastic on the dealer
(4HR) chart is neutral at 38.36. RSI is extremely oversold on the daily
chart at 19.17 with the 4-hour chart RSI neutral at 44.33. MACD remains
deep below the zero line on both the daily chart and is slopping upward
toward the zero line on the dealer 4(HR) chart. In case the reversal fails
greenback longs will most likely resume their advance and push the pair
toward the psychologically important 1.2000 figure.
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