EUR/USD Vulnerable On ECB Doubts

On Monday Euro/Dollar traded within 75 pip range. The European currency depreciated from 1.2369 to 1.2294 yesterday, matching the negative money flow sentiment at almost -22%, closing the day at 1.2343. This morning the Euro is trading quietly, with movements at the upper end of yesterday's range for now.

On the 1 hour chart wide range trading has formed, while on the 3 hour chart the downward channel is still on hold. Break above the nearest resistance and yesterday's top at 1.2369 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.2294, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2180.

Today's focus is on USA Redbook and FOMC meeting minutes, at 12:55 and 18 GMT respectively.

Quotes are moving just above the close 20 and 50 EMA on the 1 hour chart, indicating slim bullish pressure. The value of the RSI indicator is positive and calm, MACD is positive and quiet too, while CCI has crossed up the 100 line on the 1 hour chart, giving over all light long signals.

Technical resistance levels: 1.2369 1.2480 1.2600 Technical support levels: 1.2294 1.2180 1.2058

Yesterday we made +43 pips profit/loss on EUR/USD from the following sent to clients only signal: 7:42 GMT+1 Sell EUR/USD at 1.2359 SL 1.2385 TP 1.2309, exit sent at 11:06 GMT+1. Total yesterday +61, as shown at http://www.zifx.com/performance.php.