EUR/USD 1.2706 - 26 August 2010

EUR/USD Open 1.2663 High 1.2718 Low 1.2611 Close 1.2655

On Wednesday the Euro/Dollar increased, recovering from the previous losses. The European currency first depreciated from 1.2717 to 1.2611 yesterday, matching the negative Interbank sentiment projection, at nearly -1%, than resumed climbing, closing the day at 1.2655. This morning the bulls pushed up again to 1.2718, but further recovery is limited here for now. On the 1 hour chart quotes are testing the upper limit of the downward channel, while on the 3 hour chart the new downward channel is still shaping. Break above the nearest resistance and today's top at 1.2718 may trigger further recovery of the Euro. Going bellow yesterday's bottom and first support at 1.2611, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2500. Today's focus is on Germany IFO business climate index and France Unemployment at 8 and 16 GMT respectively. Quotes are moving above the 20 and 50 EMA on the 1 hour chart, indicating bullish pressure. The value of the RSI indicator is positive and rising, MACD is positive and inclining upwards, while CCI has crossed up the 100 line on the 1 hour chart, giving overall long signals.
Technical resistance levels: 1.2718 1.2813 1.2900
Technical support levels: 1.2611 1.2500 1.2409

Trading range: 1.2695 - 1.2760
Trend: Upward
Buy at 1.2706 SL 1.2676 TP 1.2746

Yesterday we made +24 pips profit on EUR/USD from the following signal:
5:34 GMT+1 Sell EUR/USD at 1.2652 SL 1.2678 TP 1.2602 exit sent at 6:33 GMT+1.
Total yesterday +83, as shown in details at