[EUR] EUR, Preparing Next Step

EUR/USD 1-hour chart, source: forexfactory.com

EUR/USD weekly chart, source: forexfactory.com

The weekly chart of EUR/USD shows the quite market and the price moves in a narrow channel for weeks. The decreasing volatility shows that it accumulates the momentum, I think. We need to prepare the very active market.

And four-hour chart and one-hour chart of EUR/USD give the clue which make we look the next step in the market. The peaks in the charts shrink and the bottoms deeper bit by bit. In one-hour chart, the price made the uprising pattern and succeeded the rise, but the price band shrinks and it may restrain the upward trend.

The weekly chart makes the rising triangle for two years. If the price reaches about 1.15s, the trend is determined, I think. It may roket or it dive to bottom.

The traders need to deal by the small charts such as 4-hour chart, 1-hour chart, fifteen -minute chart or less chart due to the uncertain trend.

Meanwhile Bloomberg reported that the agreement about the heavy fine between German Deutsche Bank and U.S. Department of Justice citing German daily Bild's story on Sunday, October 9. It's known U.S. authority imposed some 1.4 million dollars on Deutsche Bank about incomplete sale of MBS during 2005~2007, in last month. The report made the equity price of the bank plunge.

The volume of fine makes market participant worry the new finance crisis as the bankrupcy of Lehman Brothers provoked the crisis in 2008.

Deutsche Bank is doing its workout freezing the dividend since last year, planing to lay some fifteen thousands employee off. It sold its subsidiary, English life insurance company with one billion euro.

And bloomberg reported that Deutsche Bank denied the confirmation of Bild's news story.

The less volatility and the worring news make traders be more careful when dealing. The less volatility may reflect market-participants worry about currency euro.