EUR/USD 1.4077 – 27 January 2010

EUR/USD Open 1.4079 High 1.4179 Low 1.4044 Close 1.4071
Euro/Dollar continued descending on Tuesday from the 1.4179 top, down to the 1.4044 bottom, continuing trading within the bearish channel, formed on the 3 hour chart. At present trade is carried out near the diagonal resistance of the descending channel. Withstanding of the bullish attack of the upper limit of the channel and resistance at 1.4179 confirms the integrity of the channel for now. Crossing bellow the nearest support at 1.4044 may bring more strength to the bearish impulse and lead prices towards next objective 1.3941. The currency pair remain bellow the 20 and 50 EMA for now, which confirms the maintaining of the bearish perspective for now. Decreases in the values of CCI also signal for possible movement in favor of the Dollar, while RSI indicator is in the overbought zone, and MACD neutral, leaning downwards. Overall, the technical indicators are in favour of the Dollar.
Technical resistance levels: 1.4179 1.4280 1.4400
Technical support levels: 1.4044 1.3941 1.3850

Trading range: 1.4090 – 1.4025
Trend: Downward
Sell at 1.4077 SL 1.4107 TP 1.4037

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