EUR/USD 1.3127 - 29 December 2010

EUR/USD Open 1.3084 High 1.3274 Low 1.3081 Close 1.3113

On Tuesday the Euro/Dollar decreased significantly with nearly 200 pips, losing all Monday's gains. The European currency depreciated from 1.3274 to 1.3081 yesterday, matching the negative Interbank sentiment projection at nearly -6%, closing the day at 1.3113. This morning trading is tranquil and without clear direction for now. On the 1 hour chart trading is within wide range, while on the 3 hour chart the downward channel is on hold. Break above the nearest resistance and yesterday's top at 1.3274 may trigger further recovery of the Euro. Going bellow yesterday's bottom and first support at 1.3081, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2967. Today's focus is on EU16 M3 money supply, and Germany CPI and HICP, at 9 and 13 GMT respectively. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of the RSI indicator is neutral and calm, MACD is negative and quiet, while CCI has thinly crossed down the 100 line on the 1 hour chart, giving overall light short signals.
Technical resistance levels: 1.3274 1.3382 1.3500
Technical support levels: 1.3081 1.2967 1.2852

Trading range: 1.3140 - 1.3075
Trend: Downward
Sell at 1.3127 SL 1.3157 TP 1.3087

Yesterday we made +3 pips profit on EUR/USD from the following signal:
5:30 GMT Buy EUR/USD at 1.3238 SL 1.3203 TP 1.3288, exit sent at 5:33 GMT.
Total yesterday +87, as shown in details at http://www.zifx.com/performance.php.

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