EUR/USD Technical Analysis 22 February 2010

Euro/Dollar continued decreasing after the FED hiked interest rates down to 0.75% last week. On Friday the currency dropped to 1.3456 bottom on the GDP data, from where is started rising up to 1.3618, closing the week at 1.3607. Immediate support for the currency couple is Friday's bottom at 1.3456. Break bellow that level will confirm the continuation of the bearish trend, towards next objective 1.3382. The nearest resistance is this mornings's top and upper limit of the downward channel, seen on the 3 hour chart at 1.3653. Convincing penetration above that level may shake the integrity of the channel, and could lead to further recovery of the European currency towards 1.3788. Quotes are moving above the 50 and 20 EMA on the 1 hour chart, indicating bullish pressure. The values of RSI and MACD are positive and in the overbought area, while CCI is positive and calm on the 1 hour chart, giving overall short signals.Technical resistance levels: 1.3653 1.3788 1.3889Technical support levels: 1.3456 1.3382 1.3290

Trading range: 1.3650 - 1.3590Trend: DownwardSell at 1.3640 SL 1.3670 TP 1.3600

On Friday we made +32 pips profit on EUR/USD from the following signal:5:32 GMT Sell EUR/USD at 1.3477 SL 1.3503 TP 1.3427 exit sent 6:17 GMTTotal on Friday +141, as shown in details at www.zifx.com/performance.php.