EUR/USD 1.3472 – 25 February 2010

EUR/USD Open 1.3543 High 1.3621 Low 1.3451 Close 1.3540
Our preferable scenario for the Euro/Dollar for now is bearish, as strikes in Europe continue, and investors’ mood for the fundamental situation in Europe remain negative. On the 3 hour chart the Euro is making strong upward correctional movements, but the main trend remains downwards for now. On Wednesday the Euro decreased from 1.3621 down to 1.3521, closing the day at 1.3540. Immediate support for the pair is this morning’s bottom at 1.3451. Break bellow that level will confirm the continuation of the bearish trend, towards next objective 1.3363. First resistance is yesterday’s peak at 1.3621. Quotes are moving bellow the 50 and 20 EMA on the 1 hour chart, indicating strong bearish pressure. The value of RSI and CCI indicators are negative and entering the oversold area, while MACD is negative and declining on the 1 hour chart, giving overall descending signals.
Technical resistance levels: 1.3621 1.3777 1.3864
Technical support levels: 1.3451 1.3363 1.3280

Trading range: 1.3485 – 1.3420
Trend: Downward
Sell at 1.3472 SL 1.3502 TP 1.3432

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