EUR/USD 1.4361 – 6 January 2010

EUR/USD Open 1.4363 High 1.4483 Low 1.4269 Close 1.4364
Euro/Dollar consolidated within the 1.4229 – 1.4580 range for the past 3 weeks, as seen on the 1 hour chart. We will be looking for a break out of the above range for clearer movement direction. The bullish scenario on Tuesday was interrupted by a turning downward impulse, but the current bearish momentum seems very limited for the time being. Current indications support bearish outlook in the short term, which is our preferable scenario for now too. If you think conservatively, you may prefer to stay away in this situation, but if your approach is more aggressive like me, you may use the situation to sell high and buy low. Break above the nearest resistance, represented by the 1.4483 top would confirm domination of the bulls with objectives towards 1.4582. Break bellow the first support at 1.4269 may trigger further downward impulse with potential test of 1.4165, followed by 1.4079. The CCI indicator is negative and leaning downwards on the 1 hour chart, suggesting insignificant bearish pressure.
Technical resistance levels: 1.4483 1.4582 1.4667
Technical support levels: 1.4269 1.4165 1.4079

Trading range: 1.4375 – 1.4310
Trend: Downward
Sell at 1.4361 SL 1.4391 TP 1.4321


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