EUR/USD 1.5081 – 2 December 2009

EUR/USD Open 1.5089 High 1.5114 Low 1.4981 Close 1.5082
The Euro calmed after the strong ascending impulse last week because the delayed payment of Dubai to the European banks, which is expected to be temporary, after hitting the 1.4825 bottom. On Tuesday Euro started recovering very quickly and closed higher at 1.5082. The 1.4981 support did a good job, stopping further bears’ attacks, and thus preserved intact the bullish scenario, which would be confirmed if quotes manage to go above 1.5115, which is a possibility. However, unconvincing break above 1.5115 will show exhaustion of bulls and may trigger downward momentum with potential targets towards the 1.4825 support again, especially if we see a break dawn of 1.4980. No one knows whether the impact of the Dubai credit recovery will cause a temporary reaction or will continue to shake European stock markets, which might strengthen the Dollar. Short term signals are expected to be rising with possible test of 1.5200. Strong break above that level may trigger further upward momentum towards 1.5290. The CCI indicator is positive on the 1 hour chart, suggesting upward pressure.
Technical resistance levels: 1.5115 1.5200 1.5290
Technical support levels: 1.5060 1.4980 1.4825

Trading range: 1.5070 – 1.5135
Trend: Upward
Buy at 1.5081 SL 1.5051 TP 1.5121


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