EUR/USD 1.4731 - 29 October 2009

EUR/USD Open 1.4719 High 1.4837 Low 1.4690 Close 1.4718

Euro/Dollar made a significant downward movement on Wednesday with around 130 pips, reaching a bottom at 1.4697, and closing the day at 1.4718. The bearish divergence is giving signal for exhaustion of the bullish momentum and trend turn. On the 3 hour chart quotes broke down the bullish channel, suggesting a potential bearish outlook. The European currency is in a critical phase, where penetration of the 1.4690 support level could strengthen the bearish momentum towards next objective 1.4570. Our expectations are bearish in the short term, but we need convincing movement under this morning's bottom 1.4840, to confirm the descending scenario. The nearest resistance is yesterday's top at 1.4840. Break above this level may retain the bullish medium term scenario for now. The CCI indicator is neutral on the 1 hour chart, indicating calm market.
Technical resistance levels: 1.4840 1.4960 1.5085
Technical support levels: 1.4690 1.4570 1.4435

Trading range: 1.4745 - 1.4680
Trend: Downward
Sell at 1.4731 SL 1.4761 TP 1.4691

Yesterday we made +37 pips profit on EUR/USD from the following signal:
5:41 GMT+1 Sell EUR/USD at 1.4816 SL 1.4842 TP 1.4766 exited at 9:34 GMT
Total yesterday +163, as shown in details at our web site.

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