EUR/USD 1.2211 – 2 June 2010

EUR/USD Open 1.2233 High 1.2328 Low 1.2117 Close 1.2228
After the the quiet trading on Monday, yesterday Euro/Dollar traded with a decrease. Euro/Dollar depreciated from 1.2310 to 1.2117 on Tuesday, in line with the Interbank sentiment projection, at around -11%, than rose up to 1.2328, closing the day at 1.2228. On the 1 hour chart the Euro is still in a consolidation phase. Break above the nearest resistance and yesterday’s top at 1.2328 may trigger further recovery of the Euro. Going bellow this yesterday’s bottom and first support at 1.2117, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2030. Today’s focus is on EU 16 PPI at 9 GMT. Quotes are moving just bellow the 20 and 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is negative and declining, MACD is negative and calm, while CCI has crossed down the 100 line and quiet on the 1 hour chart, giving overall short signals.

Technical resistance levels: 1. 2328 1.2434 1.2500
Technical support levels: 1.2117 1.2030 1.1900

Trading range: 1.2225 – 1.2160
Trend: Downward
Sell at 1.2211 SL 1.2241 TP 1.2171

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