EUR/USD 1.2779 - 22 July 2010

EUR/USD Open 1.2768 High 1.2910 Low 1.2733 Close 1.2752

After some hesitation, on Wednesday Euro/Dollar continued dropping. The European currency depreciated from 1.2910 to 1.2733 yesterday, not matching the neutral Interbank sentiment projection, at -0.5%, closing the day at 1.2752. This morning the pair is moving tentatively for now. On the 1 hour chart the upwards channel was broken down, while on the 3 hour quotes are still testing the lower limit of the upward channel. Break above the nearest resistance and yesterday's top at 1.2910 may trigger further recovery of the Euro. Going bellow yesterday's bottom and first support at 1.2733, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2600. Today's focus is on France Business confidence, PMI July flash and services, Germany PMI July flash and services, EU 16 PMI July flash and services, and EU 16 Industrial orders at 6:45, 7, 8 and 9 GMT respectively. Quotes are moving just bellow the 20 and 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is negative and declining, MACD is negative and calm, while CCI has crossed down the 100 line on the 1 hour chart, giving overall short signals.Technical resistance levels: 1.2910 1.3022 1.3113Technical support levels: 1.2733 1.2600 1.2511

Trading range: 1.2790 - 1.2725Trend: DownwardSell at 1.2779 SL 1.2809 TP 1.2739

Yesterday we made +5 pips profit on EUR/USD from the following signal:5:34 GMT+1 Sell EUR/USD at 1.2881 SL 1.2907 TP 1.2831 exit sent 5:40 GMT+1.Total yesterday +48, as shown in details at