EUR/USD 1.3701 - 27 January 2011

EUR/USD Open 1.3708 High 1.3721 Low 1.3639 Close 1.3711

On Wednesday the Euro/Dollar traded within a narrow 80 pip range. The European currency depreciated from 1.3721 to 1.3639 on yesterday, not matching the positive Interbank sentiment projection at nearly +35%, closing the day at 1.3711. This morning trading is tranquil and within yesterday's range for now. On the 1 hour chart the upward channel is intact, and on the 3 hour chart the upward channel looks good too. Break above the nearest resistance and yesterday's top at 1.3721 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.3639, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3525. Today's focus is on France Consumer confidence, EU16 Economic sentiment index and Business climate indicator, Germany CPI and HICP, at 7:45, 10 and 13 GMT respectively. Quotes are moving just above the 20 and 50 EMA on the 1 hour chart, indicating slim bullish pressure. The value of the RSI indicator is positive and declining, MACD is positive and quiet, while CCI has thinly crossed up the 100 line on the 1 hour chart, giving overall light long signals.
Technical resistance levels: 1.3721 1.3820 1.3931
Technical support levels: 1.3639 1.3525 1.3400

Trading range: 1.3690 - 1.3755
Trend: Upward
Buy at 1.3701 SL 1.3671 TP 1.3741

Yesterday we made +14 pips profit on EUR/USD from the following signal:
7:17 GMT Sell EUR/USD at 1.3670 SL 1.3696 TP 1.3620, exit sent at 7:31 GMT.
Total yesterday +77, as shown in details at http://www.zifx.com/performance.php.

ZIFX.com