EUR/USD 1.2259 – 23 June 2010

EUR/USD Open 1.2272 High 1.2344 Low 1.2247 Close 1.2266
On Tuesday Euro/Dollar continued correcting downwards. The European currency depreciated from 1.2344 to 1.2256 yesterday, in line with the Interbank sentiment projection, at around -0.5%, closing the day at 1.2266. On the 3 hour chart the downward channel is looking for a new chance to renew, and on the 1 hour chart the new upward channel is under threat. Break above the nearest resistance and yesterday’s top at 1.2344 may trigger further recovery of the Euro. Going bellow today’s bottom and first support at 1.2247, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2150. Today’s focus is on France Business confidence and PMI, Germany PMI, Italy Consumer confidence and EU 16 PMI at 6:45, 7 and 8 GMT respectively. 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 positive and inclining upwards, MACD is negative and tranquil, while CCI has crossed down the 100 line on the 1 hour chart, giving overall mixed signals.

Technical resistance levels: 1.2344 1.2485 1.2550
Technical support levels: 1.2247 1.2150 1.2062

Trading range: 1.2245 – 1.2310
Trend: Upward
Buy at 1.2259 SL 1.2229 TP 1.2299

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