EUR/USD 1.3148 - 6 January 2011

EUR/USD Open 1.3155 High 1.3326 Low 1.3124 Close 1.3148

On Wednesday the Euro/Dollar continued decreasing significantly with over 200 pips. The European currency depreciated from 1.3326 to 1.3124, not matching the positive Interbank sentiment projection at almost +8%, closing the day at 1.3148. This morning trading is hesitant and without clear direction for now. 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 1.3326 may trigger further recovery of the Euro. Going bellow yesterday's bottom and first support at 1.3124, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3015. Today's focus is on EU16 Economic sentiment index, Business climate indicator, Retail sales and Germany Manufacturing orders, at 10 and 11 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 neutral and calm, 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: 1.3326 1.3430 1.3546
Technical support levels: 1.3124 1.3015 1.2099

Trading range: 1.3160 - 1.3095
Trend: Downward
Sell at 1.3148 SL 1.3178 TP 1.3108

Yesterday we made +40 pips profit on EUR/USD from the following signal:
5:27 GMT Sell EUR/USD at 1.3276 SL 1.3302 TP 1.3226, exit sent at 8:42 GMT.
Total yesterday +157, as shown in details at http://www.zifx.com/performance.php.

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