EUR/USD 1.2665 - 25 August 2010

EUR/USD Open 1.2633 High 1.2705 Low 1.2588 Close 1.2625

On Tuesday the Euro/Dollar continued decreasing till the weak US home sales pushed the Euro up. The European currency appreciated from 1.2588 to 1.2705 yesterday, not matching the positive Interbank sentiment projection, at around -1%, closing the day at 1.2625. This morning the bears are trying to push down again, but unconvincingly so far. On the 1 hour chart the downward channel looks good, while on the 3 hour chart the new downward channel is gathering strength. Break above the nearest resistance and yesterday's top at 1.2705 may trigger further recovery of the Euro. Going bellow today's bottom and first support at 1.2588, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2500. Today's focus is on Germany GDP Q2 and EU 16 Industrial at 6 and 9 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 slim bearish pressure. The value of the RSI indicator is negative and declining, MACD is neutral and quiet, while CCI is in line with the 100 line on the 1 hour chart, giving overall light short signals.
Technical resistance levels: 1.2705 1.2813 1.2900
Technical support levels: 1.2588 1.2500 1.2409

Trading range: 1.2675 - 1.2615
Trend: Downward
Sell at 1.2665 SL 1.2695 TP 1.2625

Yesterday we made +26 pips profit on EUR/USD from the following signal:
5:37 GMT+1 Sell EUR/USD at 1.2638 SL 1.2664 TP 1.2588 exit sent at 8:31 GMT+1.
Total yesterday +159, as shown in details at