EUR/USD 1.3276 - 5 January 2011

EUR/USD Open 1.3318 High 1.3434 Low 1.3263 Close 1.3305

On Tuesday the Euro/Dollar decreased significantly with over 140 pips. The European currency depreciated from 1.3434 to 1.3291, not matching the positive Interbank sentiment projection at over +5%, closing the day at 1.3305. This morning the bears pulled the pair even further down to 1.3263. On the 1 hour chart trading is within wide range, while on the 3 hour chart the downward channel is still on hold. Break above the nearest resistance and yesterday's top at 1.3434 may trigger further recovery of the Euro. Going bellow today's bottom and first support at 1.3263, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3140. Today's focus is on Italy, France, Germany and EU16 PMI, and EU16 Industrial orders, at 8:45, 8:50, 8:55, 9 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 inclining upwards, MACD is negative and quiet, while CCI has crossed down the 100 line on the 1 hour chart, giving overall light short signals.
Technical resistance levels: 1.3434 1.3550 1.3660
Technical support levels: 1.3263 1.3140 1.3144

Trading range: 1.3290 - 1.3225
Trend: Downward
Sell at 1.3276 SL 1.3306 TP 1.3236

Yesterday we made +29 pips profit on EUR/USD from the following signal:
5:35 GMT Sell EUR/USD at 1.3353 SL 1.3379 TP 1.3303, exit sent at 6:35 GMT.
Total yesterday +124, as shown in details at http://www.zifx.com/performance.php.

ZIFX.com