EUR/USD 1.4104 – 26 January 2010

EUR/USD Open 1.4147 High 1.4192 Low 1.4076 Close 1.4150
Euro/Dollar traded hesitantly on Monday within the 1.4110 – 1.4192 range, closing the day at 1.4125. This morning the currency couple continued its bearish movement within the downward channel, as seen on the 1 hour chart. In the economic calendar Current accounts at 9:00 GMT may bring new catalyses to the market next movements. Our expectations are for to Euro to continue the downward movement with first targets towards the nearest 1.4035 support and bottom from last Thursday, followed by 1.3941. In upward direction first resistance level for the Euro is represented by yesterday’s top at 1.4192, which is not insured by being tested, and if we see convincing breaking up, quotes may go ahead towards the upper limit of the downward channel at 1.4301, as seen on the 3 hour chart. That may seriously threaten the downward perspective. But till Euro remains under 20 and 50 EMA, our preferable scenario would be bearish. Decreasing values of RSI and the CCI indicators confirm the accumulated downward pressure.
Technical resistance levels: 1.4192 1.4301 1.4405
Technical support levels: 1.4035 1.3941 1.3850

Trading range: 1.4115 – 1.4050
Trend: Downward
Sell at 1.4104 SL 1.4134 TP 1.4064

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