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Friday, 30 May 2014

EURUSD: 30 May 2014, Friday, 9.45pm Singapore Time

EURUSD: 30 May 2014, Friday, 9.45pm Singapore Time

Attached above is the chart of EURUSD showing where we stand now in financial markets and major forex markets such as EURUSD.

Eurozone is turning weak. Euro is starting a new downtrend after failing to break up a long term RED resistance trendline. Worse, there was a fake break-up indicated in the chart above indicating strong bearishness. The Euro is starting to price in forced money printing, i.e. increase in money supply, by the European Central Bank (ECB) next year. It could also be the pricing in of a weakened Eurozone for 2015 and beyond. The weakened EURUSD is a result of reacting to deflation, responding to a weakening economy in 2015 as well as hot money/smart money largely leaving Europe now.

EURUSD has broken down multiple supports: PINK long term support as well as the BLACK mid term supports.

It is currently rebounding off a weak YELLOW support as above, with the intention to backtest BLACK support-turned-resistance @1.37062 as confirmation before resuming SOUTHWARDS again.
1.37062 area presents opportunities to add shorts again.

First target would be 1.34624 before some weak rebound and heading for more southwards directions.

Donovan Norfolk Technical Rating:
Breakdown of Long Term Uptrend
Resumption of Long Term Downtrend
Bearish-biased

Note:
Smart Money, Big Hands and Market Movers moving out of Eurozone




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