EUR/USD 1.3635 - 4 February 2011

EUR/USD Open 1.3621 High 1.3826 Low 1.3608 Close 1.3630

On Thursday the Euro/Dollar decreased with over 200 pips on the strong US data, which came out yesterday afternoon. The European currency depreciated from 1.3826 to 1.3608 yesterday, not matching the positive Interbank sentiment projection at almost +34%, closing the day at 1.3630. This morning trading is hesitant and still without clear direction. On the 1 hour chart quotes are testing the lower limit of the upward channel, while on the 3 hour chart the upward channel is intact. Break above the nearest resistance and yesterday's top at 1.3826 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.3608, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3500. Today's focus is on Italy CPI and HICP, both at 10 GMT. 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 neutral and inclining upwards, MACD is negative and quiet, while CCI has thinly crossed down the 100 line on the 1 hour chart, giving overall neutral signals.
Technical resistance levels: 1.3826 1.3943 1.4060
Technical support levels: 1.3608 1.3500 1.3388

Trading range: 1.3645 - 1.3585
Trend: Downward
Sell at 1.3635 SL 1.3665 TP 1.3595

Yesterday we made +35 pips profit on EUR/USD from the following signal:
5:30 GMT Buy EUR/USD at 1.3790 SL 1.3764 TP 1.3840, exit sent at 7:45 GMT.
Total yesterday +133, as shown in details at