EUR/USD 1.4369 – 18 January 2010

EUR/USD Open 1.4370 High 1.4507 Low 1.4335 Close 1.4353
Euro/Dollar dropped on Friday after a report from China showed a tightening of credit in the housing sector and the withdrawal of foreign investment earlier last week, causing demand for security for the US currency. The currency pair today tested the key support level in the 1.4335 area. If we see a convincing break bellow it, the Euro may weaken further and quotes may revert downwards with objectives towards 1.4322. Persistent withstanding of the support and climb above the nearest 1.4434 resistance is expected to strengthen the European currency with possible test of 1.4552. Quotations for now remain between the two moving averages 1.4229 – 1.4566 on the 3 hour chart, which give range signals. Overall, we will be looking for a break out of the above range, to determine clearer movement direction. MACD, RSI and CCI are positive on the 1 hour chart, suggesting bullish pressure.
Technical resistance levels: 1.4434 1.4552 1.4664
Technical support levels: 1.4406 1.4322 1.4235

Trading range: 1.4355 – 1.4420
Trend: Upward
Buy at 1.4369 SL 1.4339 TP 1.4409

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