EUR/USD 1.2993 - 7 January 2011

EUR/USD Open 1.2966 High 1.3171 Low 1.2966 Close 1.3000

On Thursday the Euro/Dollar continued decreasing significantly with over 200 pips. The European currency depreciated from 1.3171 to 1.2966, not matching the positive Interbank sentiment projection at over +3%, closing the day at 1.3000. This morning trading is hesitant and without clear direction for now. On the 1 hour chart new downward channel has formed, while on the 3 hour chart the downward channel is making renewal efforts. Break above the nearest resistance and yesterday's top at 1.3171 may trigger further recovery of the Euro. Going bellow yesterday's bottom and first support at 1.2966, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2850. Today's focus is on Germany Current account and Trade balance, EU16 Unemployment and GDP, and Germany Industrial production, at 7, 10 and 11 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 short signals.
Technical resistance levels: 1.3171 1.3282 1.3400
Technical support levels: 1.2966 1.2850 1.2740

Trading range: 1.3005 - 1.2940
Trend: Downward
Sell at 1.2993 SL 1.3023 TP 1.2953

Yesterday we made +43 pips profit on EUR/USD from the following signal:
5:29 GMT Sell EUR/USD at 1.3142 SL 1.3168 TP 1.3092, exit sent at 7:51 GMT.
Total yesterday +97, as shown in details at http://www.zifx.com/performance.php.

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