EUR/USD 1.4170 – 25 January 2010

EUR/USD Open 1.4152 High 1.4181 Low 1.4071 Close 1.4130
Euro/Dollar traded above the 1.4034 support on Friday and above the 20 and 50 EMA, partly recovering from previous’ days losses, closing the week at 1.4130. We expect only a convincing break below the above support to confirm continuation of the downward channel, as seen on the 1 hour chart. Further bears’ attack may take the currency couple towards next objective and key support 1.4000. As, however, the European currency showed some strength on Friday, any further rising towards the nearest resistance 1.4218 should not come unexpected. If the above level is penetrated, we may see further recovery of the Euro with possible test of 1.4306. Weak convergence of the MACD and CCI above the zero line is in support of any upward movement, while RSI indicator is in the overbought zone, showing exhaustion of the Euro.
Technical resistance levels: 1.4218 1.4306 1.4400
Technical support levels: 1.4034 1.4000 1.3907

Trading range: 1.4180 – 1.4120
Trend: Downward
Sell at 1.4170 SL 1.4200 TP 1.4130

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