EUR/USD 1.3309 - 18 January 2011

EUR/USD Open 1.3279 High 1.3422 Low 1.3243 Close 1.3292

On Monday the Euro/Dollar corrected deeply downwards increasing with nearly 180 pips. The European currency depreciated from 1.3422 to 1.3243 yesterday, not matching the positive Interbank sentiment projection at almost +20%, closing the day at 1.3292. This morning the pair is making recovery efforts, but unconvincing for now. On the 1 hour chart the upward channel is on hold, while on the 3 hour chart the downward channel is on hold. Break above the nearest resistance and yesterday's top at 1.3422 may trigger further recovery of the Euro. Going bellow yesterday's bottom and first support at 1.3243, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3130. Today is Germany ZEW economic expectations index at 10 GMT. Quotes are moving above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term bullish and medium term bearish pressure. The value of the RSI indicator is neutral and declining, MACD is thinly negative and quiet, while CCI has crossed up the 100 line on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 1.3422 1.3533 1.3650
Technical support levels: 1.3243 1.3130 1.3013

Trading range: 1.3295 - 1.3360
Trend: Upward
Buy at 1.3309 SL 1.3279 TP 1.3349

Yesterday we made +50 pips profit on EUR/USD from the following signal:
6:01 GMT Buy EUR/USD at 1.3335 SL 1.3361 TP 1.3285, TP reached at 8:08 GMT.
Total yesterday +118, as shown in details at