EUR/USD 1.4299 – 22 December 2009

EUR/USD Open 1.4286 High 1.4370 Low 1.4267 Close 1.4272
Euro/Dollar continued its bearish movement on Monday, from the 1.4370 top it climbed to first, to the bottom at 1.4267, and closing the day at 1.4272. Our expectations remain bearish for now, especially if we see a convincing break bellow yesterday’s bottom 1.4267. However, on a daily chart there is an RSI indicator divergence, pointing to a potential insignificant upward adjustment with possible test of the 1.4370 resistance, but we do not expect any stronger upward movements at this phase. Break bellow the nearest support at 1.4267 might weaken the European currency further towards 1.4190 and possibly to a test of the 1.4100 support in the longer term. The CCI indicator is positive on the 1 hour chart, suggesting insignificant upward pressure.
Technical resistance levels: 1.4370 1.4473 1.4584
Technical support levels: 1.4267 1.4190 1.4100

Trading range: 1.4310 – 1.4245
Trend: Downward
Sell at 1.4299 SL 1.4329 TP 1.4259


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