EUR/USD Dips As No Firm ECB Action Is Seen

On Monday Euro/Dollar traded within narrow 45 pip range. The European currency appreciated from 1.2489 to 1.2536 yesterday, matching the neutral money flow sentiment at under -7%, closing the day at 1.2497. This morning the Euro is weakened, dropping down to 1.2464.

On the 1 hour chart the upward channel is on hold, while on the 3 hour chart wide range trading has formed. Break above the nearest resistance and yesterday's top at 1.2536 may trigger further strengthening of the Euro. Going bellow today's bottom and first support at 1.2464, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2350.

Today's focus is on EU17 M3 money supply, USA Redbook and Consumer confidence, at 8, 12:55 and 14 GMT respectively.

Quotes are moving bellow the 20 and just above the 50 EMA on the 1 hour chart, indicating short term bearish and medium term slim bullish pressure. The value of the RSI indicator is neutral and calm, MACD is positive and quiet, while CCI has crossed down the 100 line on the 1 hour chart, giving over all neutral signals.

Technical resistance levels: 1.2536 1.2650 1.2772 Technical support levels: 1.2464 1.2350 1.2226

Yesterday we made +21 pips profit/loss on EUR/USD from the following sent to clients only signal: 5:16 GMT+1 Sell EUR/USD at 1.2510 SL 1.2536 TP 1.2460, exit sent at 8:02 GMT+1. Total yesterday +55, as shown at http://www.zifx.com/performance-past.php.