EUR/USD 1.3949 – 3 February 2010

EUR/USD Open 1.3974 High 1.3976 Low 1.3886 Close 1.3965
Euro/Dollar traded hesitantly and with volatility on Tuesday, correcting upwards to the 1.3976 top, closing the day at 1.3965. On the 3 hour chart the currency pair remains within the formed downward channel with lower limit the nearest support and bottom from the beginning of the week at 1.3854. Persuasive break bellow it would confirm the the integrity of the channel. Currently quotes are testing its upper limit at around 1.3976 and significant climb above it may bring threat to the bearish outlook. Our expectations are for the bearish trend to continue, especially if we see break bellow 1.3854, with next target 1.3766. Immediate resistance is 1.3976, which is holding the bullish attachs for now. Going above it may strengthen the European currency further towards 1.4058. Quotes are currently between 20 and 50 EMA, signaling for uncertain market. RSI and CCI indicators are neutral but declining, which is in support of the current bearish movement, MACD is in positive and in the overbought zone, supporting declining Euro. Overall, indicators give mixed signals.
Technical resistance levels: 1.3976 1.4058 1.4189
Technical support levels: 1.3854 1.3766 1.3670

Trading range: 1.3935 – 1.4000
Trend: Upward
Buy at 1.3949 SL 1.3919 TP 1.3989

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