EUR/USD 1.4852 – 8 December 2009

EUR/USD Open 1.4833 High 1.4900 Low 1.4766 Close 1.4826
Euro/Dollar continued decreasing on Monday, from the 1.4900 peak to the 1.4766 bottom, closing the day at 1.4826. On the 3 hour chart the upward channel was broken downwards, which gives us indication for a potential bearish impulse. The nearest support is represented by yesterday’s bottom 1.4766 level. Break bellow this zone might trigger further bearish pressure and weaken the European currency down to 1.4685. Stock market appears to have recovered well after the panic reaction around the Dubai’s credit problems, while gold continues to make new lows on all charts, pushing the Dollars up. Our expectations are for the Euro to remain weak in the short term. Immediate resistance is yesterday’s top at 1.4900. Convincing penetration of it might renew Euro’s ascending channel with possible testing of 1.4952, and potential next target 1.5086. The CCI indicator is neutral on the 1 hour chart, suggesting range trading.
Technical resistance levels: 1.4900 1.4952 1.5086
Technical support levels: 1.4766 1.4685 1.4600

Trading range: 1.4865 – 1.4800
Trend: Downward
Sell at 1.4852 SL 1.4882 TP 1.4812


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