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| EUR/USD 1-hour chart. source: forexfactory.com |
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| EUR/USD weekly chart. source: forexfactory.com |
On Friday, one of the major currency pair EUR/USD rollercoastered making 'V pattern' in one-hour chart and four-hour chart. The 'V pattern' is built when the price plunges and soars and this pattern is prone to fail to raise the price. 'W pattern' or 'Double-Bottoms pattern' is more trustworthy than 'V pattern' and '(reverse) Head-and-Shoulders pattern' is more believable than 'W pattern'.
Before the plunge, the currency pair raised its bottoms step by step. After it recovered the trend, it raised the bottoms more. It may face the some adjustment but it seems to keep its trend of rising bit by bit.
We need to look forward the reason of 'V pattern' occurrence. We should pay attention that the news from Germany led the price falling-down and soaring. The global bank, Deutsche Bank faces the crisis and it makes the investors worry. Some investors withdraw from the bank and its equity price fell. The sense of crisis drag the price down. Investors worries that Deutsche Bank may be bankrupt and the financial crisis comes again as Lehman Brothers has done. Deutsche Bank faces the enormous fine by U.S. administration and it can make the bank be bankrupt.
But news agency AFP reported that the penalty volume will be reduced to half size on Friday. The report gave the market. The currency pair EUR/USD rose and Standard and Poors Index in finance part rose about 1.4 percent recording high in two months.
The finance circumstance is positive but it doesn't say the bullish market yet. The weekly chart of EUR/USD is still less volatile. The price moves in the narrow band in the weekly chart yet.
And we need to watch the market carefully.
In this Friday, U.S. non-farm payrolls is reported. It is one of the very effective economic news and the market expects the change of employment increases to 171 thousands. The gauge in last month was the increase of 151 thousands. The forecast is positive to the market. But we know the positive signal from the real economy may provoke the U.S. Federal Fund Rate raise.
Meanwhile West Texas Intermediate(WTI) price 0.9 percent to 48.24 dollars in New York Mercantile Exchange on Friday. And the prices in commodity futures market rose on Friday. The corn futures price rose 2.3 percent and the bean futures price rose 0.4 percent to 9.54 dollars per bushel.
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