EUR/USD 1.3224 - 16 December 2010

EUR/USD Open 1.3222 High 1.3379 Low 1.3206 Close 1.3211

On Wednesday the Euro/Dollar started decreasing significantly with over 170 pips. The European currency depreciated from 1.3379 to 1.3206 yesterday, not matching the positive Interbank sentiment projection at nearly +16%, closing the day at 1.3211. This morning the pair is trading quietly and without clear direction for now. On the 1 hour chart trading is still within range, while on the 3 hour chart the downward channel is is on hold. Break above the nearest resistance and yesterday's top at 1.3379 may trigger further recovery of the Euro. Going bellow yesterday's bottom and first support at 1.3206, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3100. Today's focus is on France and Germany PMI, Italy Consumer confidence, EU 16 PMI, Italy CPI and HICP and EU 16 Harmonized CPI, at 8, 8:30, 9 and 10 GMT respectively. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of the RSI indicator is negative and hesitant, MACD is negative and quiet, while CCI has crossed down the 100 line on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.3379 1.3498 1.3600
Technical support levels: 1.3206 1.3100 1.2987

Trading range: 1.3235 - 1.3170
Trend: Downward
Sell at 1.3224 SL 1.3254 TP 1.3184

Yesterday we made +30 pips profit on EUR/USD from the following signal:
6:09 GMT Sell EUR/USD at 1.3319 SL 1.3345 TP 1.3269, exit sent at 6:29 GMT.
Total yesterday +63, as shown in details at http://www.zifx.com/performance.php.

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