EUR/USD 1.2660 - 31 August 2010

EUR/USD Open 1.2662 High 1.2768 Low 1.2633 Close 1.2661

On Monday the Euro/Dollar started declining, as expected, dropping with just over 100 pips. The European depreciated from 1.2768 to 1.2633 yesterday, not matching the positive Interbank sentiment projection, at around +1%, closing the day at 1.2661. This morning bears pushed further down to 1.2633. On the 1 hour chart the downward channel is trying to resume, while on the 3 hour chart the downward channel is on hold. Break above the nearest resistance and yesterday's top at 1.2768 may trigger further recovery of the Euro. Going bellow this morning's bottom and first support at 1.2633, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2526. Today's focus is on Italy Business confidence, Germany Unemployment, Italy Retail sales, Italy CPI and HICP, EU 16 Harmonized CPI and EU 16 Unemployment, at 07:30, 7:55, 8 and 9 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 negative and calm, MACD is negative and quiet too, while CCI has crossed down the 100 line on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.2768 1.2847 1.2950
Technical support levels: 1.2633 1.2526 1.2415

Trading range: 1.2670 - 1.2610
Trend: Downward
Sell at 1.2660 SL 1.2690 TP 1.2620

Yesterday we made +31 pips profit on EUR/USD from the following signal:
7:18 GMT+1 Buy EUR/USD at 1.2746 SL 1.2772 TP 1.2696 exit sent at 8:06 GMT+1.
Total yesterday +96, as shown in details at