EUR/USD 1.4734 – 9 December 2009

EUR/USD Open 1.4693 High 1.4863 Low 1.4670 Close 1.4700
Euro/Dollar made a significant bearish movement on Tuesday, dropping below the 1.4700 support, reaching a bottom at 1.4670, and closing the day at 1.4700. The bullish scenario is certainly under a serious threat, but remains valid until quotes are holding above the 1.4652 key support level, as seen on the 3 hour chart. Our expectations are neutral in the short term. The nearest resistance is represented by yesterday’s top 1.4863. Break above it may lead to further bullish momentum with possible test of 1.4935. The CCI indicator is in the overbought zone and heading downwards on the 1 hour chart, suggesting further potential downward momentum. Going under the 1.4670 support line can be considered as an end of the bullish scenario and trigger stronger bearish impulse towards 1.4511, followed by 1.4430.
Technical resistance levels: 1.4863 1.4935 1.5000
Technical support levels: 1.4670 1.4600 1.4511

Trading range: 1.4745 – 1.4680
Trend: Downward
Sell at 1.4734 SL 1.4764 TP 1.4694


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