EUR/USD 1.4718 – 10 December 2009

EUR/USD Open 1.4735 High 1.4777 Low 1.4676 Close 1.4706
Euro/Dollar continued weakening on Wednesday insignificantly, breaking down the 1.4677 support level on the 3 hour chart, where the bearish momentum was limited. Quotes than jumped up, towards the upper limit of the downward channel, but remained below it for now. Expectations are for bears’ domination in the short term, but we are looking for convincing break down of 1.4676 to confirm the strength of the bearish scenario, although indications already show partial failure of the bulls and turning descending trend towards 1.4600, followed by 1.4511. In upward direction immediate and important resistance is yesterday’s top at 1.4777. Break above this level and subsequent movement over the upper limit of the downward channel may lead to Euro recovery towards 1.4863. The CCI indicator is about to cross down the 100 line on the 1 hour chart, suggesting downward pressure.
Technical resistance levels: 1.4777 1.4863 1.4935
Technical support levels: 1.4676 1.4600 1.4511

Trading range: 1.4730 – 1.4665
Trend: Downward
Sell at 1.4718 SL 1.4748 TP 1.4678


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