After the break of descending channel and reverse in upward direction, Euro/Dollar met twice the resistance level of 1.3340. This corresponds with SMA line indicator. The downward movement is in a crucial phase, because it is testing the upper limit of the downward channel. In such situations the price often finds support and movement reverses. Key support levels are 1.2700, followed by 1.2580, located at the trend line. Immediate resistance is represented by the 1.2825, followed by 1.2915 levels. Negative news about the U.S. economy continue, leading to decline of stock indexes. As a result, the dollar strengthened against other majors in its basket. This may practically push up the U.S. dollar toward levels around 1.4000 in the following weeks. But the CCI indication has crossed down the 100 line on the 1 hour chart, and therefore, as for the short term, our scenario remains descending.
Technical resistance levels: 1.2825 1. 2915 1.3000
Technical support levels: 1.2700 1.2580 1.2465
Trading range: 1.2745 - 1.2685
Sell at 1.2735 SL 1.2765 TP 1.2695
On Friday we made +25 pips profit on EUR/USD from the following signal:
5:49 GMT Sell EUR/USD at 1.2895 SL 1.2921 TP 1.2845 exited at 7:30 GMT
Total on Friday +137, as shown at www.zifx.com/performance.php