EUR/USD 1.3488 – 19 February 2010

EUR/USD Open 1.3468 High 1.3645 Low 1.3449 Close 1.3526
The significant rise of Euro/Dollar at the beginning of this week is considered as correctional movement of the main bearish channel formed on the 3 hour chart. On Thursday the currency continued decreasing from the 1.3645 top to the 1.3449 bottom, closing the day at 1.3526. Immediate support for the currency couple is yesterday’s bottom at 1.3449. Break bellow that level will confirm the continuation of the bearish trend, towards next objective 1.3382. The nearest resistance is yesterday’s top at 1.3645. Convincing penetration above that level may shake the integrity of the descending channel, and could lead to further recovery of the European currency towards 1.3788. Quotes are moving bellow the 50 and 20 EMA on the 1 hour chart, indicating bearish pressure. The values of RSI and MACD are negative and declining, while CCI is negative and dovish on the 1 hour chart, giving overall bearish signals.
Technical resistance levels: 1.3645 1.3788 1.3889
Technical support levels: 1.3449 1.3382 1.3290

Trading range: 1.3500 – 1.3435
Trend: Downward
Sell at 1.3488 SL 1.3518 TP 1.3448

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