EUR/USD 1.3302 - 3 January 2011

EUR/USD Open 1.3355 High 1.3425 Low 1.3275 Close 1.3383

Happy New 2011! On Friday the Euro/Dollar increased significantly with nearly 140 pips. The European currency appreciated from 1.3287 to 1.3425 on Friday, not matching the negative Interbank sentiment projection at around -13%, closing the year 2010 at 1.3383. This deep correction commenced, pulling down the pair to 1.3275. 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 Friday's top at 1.3425 may trigger further recovery of the Euro. Going bellow today's bottom and first support at 1.3275, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3160. Today's focus is on Italy, France, Germany and EU16 PMI, at 8:45, 8:50, 8:55 and 9 GMT respectively. Quotes are moving just bellow the 20 and 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is negative and declining, MACD is neutral and quiet, while CCI has crossed down the 100 line on the 1 hour chart, giving overall light short signals.
Technical resistance levels: 1.3425 1.3533 1.3650
Technical support levels: 1.3275 1.3160 1.3050

Trading range: 1.3315 - 1.3250
Trend: Downward
Sell at 1.3302 SL 1.3332 TP 1.3262

Last Thursday we made +19 pips profit on EUR/USD from the following signal:
5:31 GMT Buy EUR/USD at 1.3231 SL 1.3205 TP 1.3281, exit sent at 6:33 GMT.
Total last Thursday +102, as shown in details at http://www.zifx.com/performance.php.

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