EUR/USD 1.3761 - 28 February 2011

EUR/USD Open 1.3733 High 1.3838 Low 1.3710 Close 1.3748

On Friday the Euro/Dollar corrected deeply downwards with over 110 pips. The European currency depreciated from 1.3838 to 1.3723 on Friday, not matching the positive Interbank sentiment projection at above +4%, closing the week at 1.3748. This morning the pair dropped further down to 1.3710, from which point began to recover. On the 1 hour chart quotes are testing the lower limit of the upward channel, while on the 3 hour chart the upward channel is still trying to resume. Break above the nearest resistance and Friday's top at 1.3838 may trigger further strengthening of the Euro. Going bellow today's bottom and first support at 1.3710, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3592. Today's focus is on Germany Import prices, France PPI and EU17 Harmonized CPI, at 7, 7:45, and 10 GMT respectively. Quotes are moving above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term bullish and medium term bearish pressure. The value of the RSI indicator is positive and rising, MACD is negative and inclining upwards, while CCI has just crossed up the 100 line on the 1 hour chart, giving overall light long signals.
Technical resistance levels: 1.3838 1.3950 1.4067
Technical support levels: 1.3710 1.3592 1.3477

Trading range: 1.3750 - 1.3825
Trend: Upward
Buy at 1.3761 SL 1.3731 TP 1.3811

On Friday we made +27 pips profit on EUR/USD from the following signal:
5:28 GMT Buy EUR/USD at 1.3826 SL 1.3800 TP 1.3876, exit sent at 9:43 GMT.
Total on Friday +106, as shown in details at