EUR/USD 1.4950 - 16 October 2009

EUR/USD Open 1.4940 High 1.4966 Low 1.4855 Close 1.4944

On Thursday Euro/Dollar made a deep correctional movement, reaching a bottom at 1.4855, and closing the day at 1.4944. The 1.4966 level is a key resistance zone, the break up of which will determine whether to expect further bullish impulse towards 1.5080, followed by 1.5200. Unconvincing overtake of the level may reverse the currency couple back down to 1.4725. Today the downward correction may continue. However, there is still a valid ascending channel on the 1 hour chart from the beginning of this month, indicating bulls domination in the long term. The nearest support is yesterday's bottom at 1.4855, and a coherent movement under is may shake the bulls. The CCI indicator is about to cross down the 100 line on the 1 hour chart, indicating descending pressure.

Technical resistance levels: 1.4965 1.5080 1.5200

Technical support levels: 1.4855 1.4725 1.4600

Trading range: 1.4950 - 1.4885

Trend: Downward

Sell at 1.4936 SL 1.4966 TP 1.4896

Yesterday we made +15 pips profit on EUR/USD from the following signal:

5:36 GMT+1 Buy EUR/USD at 1.4953 SL 1.4927 TP 1.5003 exited at 7:14 GMT

Total yesterday +101, as shown at www.zifx.com/performance.php

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