EUR/USD 1.4020 – 28 January 2010

EUR/USD Open 1.4028 High 1.4095 Low 1.3958 Close 1.4022
Euro/Dollar traded hesitantly and within narrow range on Wednesday, closing the day at 1.4022. The upper level of the downward channel and top level level from Monday at 1.4190 has held the Euro’s bullish attachs so far and has preserved the downward channel’s integrity intact for now. Only convincing break above that upper limit would signal for stronger bulls and possibly bring threat to the bears’ domination. Today the currency couple seems to be entering into consolidation phase. Quotes currently remain below the 20 and 50 EMA, supporting our expectation for a further lowering of the European currency. CCI indicator recorded a decline of values and signals for possible appreciation of the Dollar. Keeping the lines of the RSI and MACD indicator from the overbought zone to around zero supports the consolidation and insignificant downward pressure in favour of the Dollar. Overall, technical indicators support the bearish outlook.
Technical resistance levels: 1.4095 1.4190 1.4282
Technical support levels: 1.4044 1.3941 1.3850

Trading range: 1.4030 – 1.3970
Trend: Downward
Sell at 1.4020 SL 1.4050 TP 1.3980

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