EUR/USD 1.2813 - 19 August 2010

EUR/USD Open 1.2853 High 1.2912 Low 1.2785 Close 1.2850

After further initial climb, on Wednesday the Euro/Dollar started correcting downwards. The European currency appreciated from 1.2825 to 1.2912 yesterday, matching the positive Interbank sentiment projection, at nearly +2%, than comenced dropping, closing the day at 1.2850. This morning the pair showed further weakness down to 1.2785. On the 1 hour chart new downward channel is still trying to resume, while on the 3 hour chart the upward channel was broken downwards. Break above the nearest resistance and yesterday's top at 1.2912 may trigger further recovery of the Euro. Going bellow today's bottom and first support at 1.2785, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2671. Today's focus is on Germany PPI at 6 GMT. 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 consolidating, 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: 1.2912 1.2987 1.3100
Technical support levels: 1.2785 1.2671 1.2550

Yesterday we made +25 pips profit on EUR/USD from the following signal:
5:32 GMT+1 Sell EUR/USD at 1.2849 SL 1.2875 TP 1.2799 exit sent at 7:04 GMT+1.
Total yesterday +119, as shown in details at