EUR/USD 1.3646 – 8 February 2010

EUR/USD Open 1.3645 High 1.3746 Low 1.3585 Close 1.3674
After the significant correction at the beginning of last week, Euro/Dollar continued declining from 3 February, as seen on the 15 minute chart. The descending extended on Friday, closing the week at 1.3674. The currency couple is again on the slippery bearish track for now, as seen on the 1 hour chart. The nearest support is Friday’s bottom at 1.3585, and if broken down, the bearish impulse is expected to be prolonged further towards next target 1.3580. Any upward correction should not come unexpected after such drastic descends, but only convincing break above the upper limit of the downward channel, currently around 1.3746 may seriously threaten the integrity of the downward channel and possibly lead to 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, while MACD and CCI are neutral and leaning upwards on the 1 hour chart, giving overall mixed signals.
Technical resistance levels: 1.3746 1.3854 1.4018
Technical support levels: 1.3585 1.3472 1.3380

Trading range: 1.3660 – 1.3595
Trend: Downward
Sell at 1.3646 SL 1.3676 TP 1.3606

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