EUR/USD 1.4353 – 21 December 2009

EUR/USD Open 1.4332 High 1.4402 Low 1.4267 Close 1.4333
Euro/Dollar attempt to rise on Friday, reaching a peak at 1.4402 after some good economic data came out, but further increasing movement was limited there and the currency pair dropped down to 1.4267, closing the week at 1.4333. US Dollar was trading with an increase after last week’s Fed decision to keep the interest rates at 0.25%, which was expected. This fact should keep the main downward scenario intact for now with next objectives towards 1.4190, followed by the psychological 1.4000. On the 1 hour chart quotes broke down of the down 1.4300 – 1.5128 range, indicating descending perspectives. If we see consistent movement below the nearest support 1.4267, bearish trend continuation should be expected. First resistance is Friday’s top at 1.4402. Break above this level can threaten the bears’ domination and might lead to deeper upward correction. The CCI indicator is positive, however leaning downwards on the 1 hour chart, suggesting insignificant downward pressure.
Technical resistance levels: 1.4402 1.4473 1.4584
Technical support levels: 1.4267 1.4190 1.4000

Trading range: 1.4365 – 1.4300
Trend: Downward
Sell at 1.4353 SL 1.4383 TP 1.4313


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