Euro Technical Major Currencies (2010-02-01)

The euro versus dollar's short term trading is organizing within the descending channel after insuring the breach of support for the bullish medium term; therefore, more bearishness is expected for this week. Momentum indicators are showing oversold signs that are pushing the pair towards bullishly correction, however in overall we expect a possible bearish short term direction for this week; targeting mainly 1.3485. It is vital that 1.4080 remain intact so that it may prevail.

The trading range for today is among the key support at 1.3485 and the key resistance at 1.4200.

The general trend is to the upside as far as 1.3480 remains intact with targets at 1.6000.

Previous ReportSupport1.38701.38001.37401.36451.3575Resistance1.39251.40001.40801.41451.4195RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.3925 targeting 1.3750 and stop loss above 1.4050, might be appropriate.