EUR/USD Technical Analysis 21 May 2010

After some hesitation, the recovery of the the Euro continued on Thursday with a strong upward impulse. Euro/Dollar climbed from 1.2305 to 1.2589 yesterday, in converse with the Interbank sentiment projection, at around -2%, closing the day at 1.2483. On the 1 hour chart the downward channel is now under serious threat. Break above the nearest resistance and today's top at 1.2668 may trigger further rising of the Euro. Going bellow yesterday's bottom and first support at 1.2305, however, should confirm continuation of the bearish trend, towards next target 1.2143. Today's focus is on Germany GDP Q1, France PMI, Germany PMI, EU 16 PMI and Current accounts, and Germany IFO business climate at 6, 7, 7:30 and 8 GMT respectively. Quotes are moving way above the 20 and 50 EMA on the 1 hour chart, indicating bullish pressure. The values of all RSI, MACD and CCI indicators are positive and inclining upwards on the 1 hour chart, giving overall long signals.Technical resistance levels: 1.2668 1.2750 1.2883Technical support levels: 1.2305 1.2143 1.2064

Trading range: 1.2610 - 1.2670Trend: UpwardBuy at 1.2620 SL 1.2590 TP 1.2660

Yesterday we made +11 pips profit on EUR/USD from the following signal:5:34 GMT+1 Buy EUR/USD at 1.2360 SL 1.2334 TP 1.2410 exit at 5:35 GMT+1.Total yesterday +142, as shown in details at http://www.zifx.com/performance.php.