EUR/USD 1.3157 - 20 December 2010

EUR/USD Open 1.3161 High 1.3358 Low 1.3124 Close 1.3183

On Friday the Euro/Dollar climbed at first as expected, than weakened in the afternoon. The European currency appreciated to 1.3358, from where dropped down to 1.3132 on Friday, not matching the positive Interbank sentiment projection at around +6%, closing the week at 1.3183. This morning the pair descended further, reaching 1.3124. On the 1 hour chart trading is still within range, while on the 3 hour chart the downward channel is on hold. Break above the nearest resistance and Friday's top at 1.3358 may trigger further recovery of the Euro. Going bellow today's bottom and first support at 1.3124, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3011. Today's focus is on Germany PPI and EU 16 Current account, at 7 and 9 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 calm, MACD is negative and quiet too, while CCI has crossed down the 100 line on the 1 hour chart, giving overall light short signals.
Technical resistance levels: 1.3358 1.3470 1.3584
Technical support levels: 1.3124 1.3011 1.2900

Trading range: 1.3170 - 1.3105
Trend: Downward
Sell at 1.3157 SL 1.3187 TP 1.3117

On Friday we made +50 pips profit on EUR/USD from the following signal:
6:29 GMT Buy EUR/USD at 1.3308 SL 1.3273 TP 1.3358, TP reached at 10:01 GMT.
Total on Friday +108, as shown in details at