EUR/USD 1.3254 - 10 December 2010

EUR/USD Open 1.3238 High 1.3322 Low 1.3163 Close 1.3236

On Thursday the Euro/Dollar sharply dropped with around 160 pips. The European currency depreciated from 1.3322 to 1.3163 yesterday, not matching the positive Interbank sentiment projection at nearly +13%, than commenced adjusting, closing the day at 1.3236. This morning trading is hesitant and without clear direction for now. On the 1 hour chart range trading has formed, while on the 3 hour chart the downward channel is on hold. Break above the nearest resistance and yesterday's top at 1.3322 may trigger further recovery of the Euro. Going bellow yesterday's bottom and first support at 1.3163, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3051. Today's focus is on France and Italy Industrial production, and Italy GDP Q3, at 7:45 and 9 GMT respectively. Quotes are moving just above the 20 and 50 EMA on the 1 hour chart, indicating slim bullish pressure. The value of the RSI indicator is positive and rising, MACD is neutral and quiet, while CCI has crossed up the 100 line on the 1 hour chart, giving overall light long signals.
Technical resistance levels: 1.3322 1.3440 1.3554
Technical support levels: 1.3163 1.3051 1.2940

Trading range: 1.3265 - 1.3200
Trend: Downward
Sell at 1.3254 SL 1.3284 TP 1.3214

Yesterday we made +50 pips profit on EUR/USD from the following signal:
5:350 GMT Sell EUR/USD at 1.3308 SL 1.3334 TP 1.3258, TP reached at 9:31 GMT.
Total yesterday +173, as shown in details at