EUR/USD 1.2723 - 23 August 2010

EUR/USD Open 1.2708 High 1.2829 Low 1.2674 Close 1.2717

On Friday the Euro/Dollar dropped significantly, as expected. The European currency depreciated from 1.2829 to 1.2674 on Friday, not matching the positive Interbank sentiment projection, at nearly +2%, closing the week at 1.2717. This morning the pair is making recovery efforts, but unconvincing for now. On the 1 hour chart new downward channel is formed, while on the 3 hour chart the upward channel was broken downwards. Break above the nearest resistance and Friday's top at 1.2829 may trigger further recovery of the Euro. Going bellow Friday's bottom and first support at 1.2674, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2550. Today's focus is on France and Germany PMI, and EU 16 PMI and PMI services at 7, 7:30 and 8 GMT respectively. Quotes are moving in line with the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term neutral and medium term bearish pressure. The value of the RSI indicator is positive and rising, MACD is negative and quiet, while CCI is in line with the 100 line on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 1.2829 1.2913 1.3000
Technical support levels: 1.2674 1.2550 1.2441

Trading range: 1.2735 - 1.2670
Trend: Downward
Sell at 1.2723 SL 1.2753 TP 1.2683
On Friday we made +22 pips profit on EUR/USD from the following signal:
7:44 GMT+1 Sell EUR/USD at 1.2829 SL 1.2855 TP 1.2779 exit sent at 7:58 GMT+1.
Total on Friday +92, as shown in details at