EUR/USD 1.3653 – 3 March 2010

EUR/USD Open 1.3617 High 1.3654 Low 1.3442 Close 1.3612
The upper limit of the descending channel on the 3 hour chart is still holding the Euro/Dollar from breaking up at the 1.3665 resistance on Monday. On Tuesday the currency couple continued depreciating down to 1.3442, as expected, from where it rose up to 1.3654, closing the day at 1.3612.Our expectation are for the descending trend to continue till the fundamental perspective in Europe remains negative. Break bellow the 1.3442 support may open way towards next downward target 1.3353. The nearest resistance is Monday’s top at 1.3665. Today at 9:00 GMT is the EU PPI and at 10:00 Retail sales, which may give clearer direction of the currency pair. Quotes are moving above the 50 and 20 EMA on the 1 hour chart, indicating bullish pressure. The values of RSI and MACD indicators are in the overbought zone, while CCI is positive and quiet on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.3665 1.3777 1.3864
Technical support levels: 1.3442 1.3353 1.3260

Trading range: 1.3665 – 1.3600
Trend: Downward
Sell at 1.3653 SL 1.3683 TP 1.3613

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