EUR/USD Technical Analysis 10 February 2011 Trading Idea

EUR/USD 1.3687 - 10 February 2011

On Wednesday the Euro/Dollar increased with over 130 pips. The European currency appreciated from 1.3610 to 1.3744 yesterday, matching the positive Interbank sentiment projection at over +14%, closing the day at 1.3728. This morning the Euro is trading quietly and within yesterday's range for now. On the 1 hour chart range trading has formed, while on the 3 hour chart the upward channel is on hold. Break above the nearest resistance and yesterday's top at 1.3744 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.3610, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3500. Today's focus is on France and Italy Industrial production at 7:45 and 9 GMT respectively. Quotes are moving just bellow the 20 and above the 50 EMA on the 1 hour chart, indicating short term bearish and medium term bullish pressure. The value of the RSI indicator is negative and declining, MACD is thinly positive and quiet, while CCI is in line with the 100 line on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 1.3744 1.3750 1.3868
Technical support levels: 1.3610 1.3500 1.3388

Yesterday we made +19 pips profit on EUR/USD from the following signal:
5:32 GMT Sell EUR/USD at 1.3647 SL 1.3673 TP 1.3597, exit sent at 7:50 GMT.
Total yesterday +105, as shown in details at http://www.zifx.com/performance.php.