Euro/Dollar continues to move within the 1.3418 - 1.3734 consolidation zone. This was determined by 2 way movements of stock indices yesterday. Speeches of Federal Reserve for the necessary measures and a new model for regulation of the banking system reflected in dynamic market instruments, but ultimately they closed within the normal daily range without major breaks out of the given above frames. On the 4 hour chart the currency pair finds support in the upper limit on the secondary channel, which previously has played a role of a resistance. If this trend line continues to support the price, a break can be expected out of the consolidation zone above 1.3734, in search of 1.4050, followed by 1.4350. That signal will come from stock index, especially if the Dow Jones breaks the current psychological limit of 8000 points. By the end of today this should be clarified. The probability is not small, but be careful for possible following marginal breaks with major reductions. This can take the players trading on breaks in the delicate situation, where quick decisions will be needed. Immediate support is 1.3500, followed by 1.3410. Short term resistance is 1.3645, followed by 1.3730.
Technical resistance levels: 1.3645 1.3730 1.3850
Technical support levels: 1.3500 1.3410 1.3320
Trading range: 1.3600 - 1.3540
Sell at 1.3590 SL 1.3630 TP 1.3550
Yesterday we made +48 pips profit on EUR/USD from the following signal:
6:15 GMT Sell EUR/USD at 1.3603 SL 1.3629 TP 1.3553 exited at 6:56 GMT
Total yesterday +143, as shown at www.zifx.com/performance.php