EUR/USD 1.4258 – 23 December 2009

EUR/USD Open 1.4254 High 1.4331 Low 1.4223 Close 1.4247
Euro/Dollar traded hesitantly on Tuesday, forming divergence on the daily chart. Quotes made a decreasing effort from the 1.4331 top, reaching a bottom at 1.4223, but closed the day higher at 1.4247. The inability to move bellow the key 1.4223 support was not a surprise as the upward adjustment did not come unexpected after a week of significant downward movement. The downward scenario, however, is still in control, as seen on the 3 hour chart, where the bearish channel remains intact. Break under the 1.4223 may trigger further bearish impulse towards next target 1.4115, followed by 1.4000, which is a a long term psychological support. Immediate resistance is represented by yesterday’s top 1.4331, the penetration of which may bring threat to the downward channel. The CCI indicator is positive and quiet on the 1 hour chart, suggesting insignificant upward pressure.
Technical resistance levels: 1.4331 1.4408 1.4579
Technical support levels: 1.4223 1.4115 1.4000

Trading range: 1.4270 – 1.4205
Trend: Downward
Sell at 1.4258 SL 1.4288 TP 1.4218


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