EUR/USD 1.2030 – 10 June 2010

EUR/USD Open 1.1989 High 1.2071 Low 1.1926 Close 1.1980
On Wednesday Euro/Dollar traded rose sharply as expected. The European currency appreciated from 1.1926 to 1.2071 yesterday, in converse with the Interbank sentiment projection, at around -16%, closing the day at 1.1980. On the 3 hour chart the downward channel is intact, but on the 1 hour chart upward correction may turn into further strengthening of the Euro. Break above the nearest resistance and yesterday’s top at 1.2071 may trigger further recovery of the Euro. Going bellow yesterday’s bottom and first support at 1.1926, however, would confirm continuation of the bearish trend, towards next objective downwards 1.1790. Today’s focus is on Germany CPI and HICP, France Industrial production, Italy Industrial production and GDP, and EU 16 ECB meeting announcement and press conference at 6, 6:45, 8 11:45, and 12:30 GMT respectively. Quotes are moving above the 20 and 50 EMA on the 1 hour chart, indicating bullish pressure. The value of the RSI indicator is positive and hesitant, MACD is positive and calm, while CCI has crossed up the 100 line on the 1 hour chart, giving overall long signals.

Technical resistance levels: 1. 2071 1.2210 1.2300
Technical support levels: 1.1926 1.1790 1.1700

Trading range: 1.2020 – 1.2080
Trend: Upward
Buy at 1.2030 SL 1.2000 TP 1.2070

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