EUR/USD 1.3620 - 31 January 2011

EUR/USD Open 1.3571 High 1.3747 Low 1.3570 Close 1.3606

On Friday the Euro/Dollar decreased significantly with around 160 pips. The European currency depreciated from 1.3747 to 1.3582 on Friday, not matching the positive Interbank sentiment projection at almost +40%, closing the week at 1.3606. This morning bears pulled the pair even further down to 1.3570. On the 1 hour chart quotes are testing the lower limit of the upward channel, and on the 3 hour chart the upward channel also looks good. Break above the nearest resistance and Friday's top at 1.3747 may trigger further strengthening of the Euro. Going bellow today's bottom and first support at 1.3570, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3454. Today's focus is on Germany Retail sales, Italy PPI and EU17 Harmonized CPI, at 7 and 10 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 thinly crossed down the 100 line on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.3747 1.3860 1.3975
Technical support levels: 1.3570 1.3454 1.3340

Trading range: 1.3630 - 1.3570
Trend: Downward
Sell at 1.3620 SL 1.3650 TP 1.3580

On Friday we made +13 pips profit on EUR/USD from the following signal:
5:38 GMT Buy EUR/USD at 1.3711 SL 1.3685 TP 1.3761, exit sent at 6:51 GMT.
Total on Friday +68, as shown in details at http://www.zifx.com/performance.php.

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