EUR/USD 1.3716 – 5 February 2010

EUR/USD Open 1.3742 High 1.3902 Low 1.3673 Close 1.3723
After the significant correction at the beginning of this week, Euro/Dollar declined sharply on Thursday, as expected, from 1.3902 down to 1.3716, closing the day at 1.3723. That put the currency couple back on the bearish track, as seen on the 1 hour chart. If the nearest support and this morning bottom at 1.3673 is broken down, the descending momentum is expected to continues with next objectives towards 1.3580. Any upward correction should not come unexpected after the significant drop, but only convincing break above the upper limit of the downward channel, currently around 1.4024 may seriously shake the integrity of the bearish channel and lead to possible further recovery of the European currency. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish perspective. The values of RSI indicator is negative and leaning upwards, while MACD and CCI are negative and calm on the 1 hour chart, giving overall mixed signals.
Technical resistance levels: 1.4024 1.4113 1.4200
Technical support levels: 1.3673 1.3580 1.3472

Trading range: 1.3730 – 1.3665
Trend: Downward
Sell at 1.3716 SL 1.3746 TP 1.3676

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