EUR/USD 1.3687 – 4 March 2010

EUR/USD Open 1.3700 High 1.3734 Low 1.3595 Close 1.3696
The Euro/Dollar rose on Wednesday after new strategic measures of the Greek government for lowering the deficit with 5 bln were announced. The currency couple climbed from 1.3595 up to 1.3734, closing the day at 1.3612. Our expectation are for the descending trend to continue as debt crisis in Europe is still unsolved and may spread to Spain too. Going bellow the 1.3595 support may strengthen the Dollar further towards next downward objective 1.3516. The nearest resistance is Wednesday’s top at 1.3734. Today’s focus is on the EU GDP Q4 at 10:00 GMT, which may bring volatile movements to the market. Quotes are moving above the 50 and bellow the 20 EMA on the 1 hour chart, indicating slight bearish pressure. The value of RSI indicator is negative and declining, MACD is positive and slightly declining, while CCI is neutral and quiet on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.3734 1.3802 1.4012
Technical support levels: 1.3595 1.3516 1.3423

Trading range: 1.3700 – 1.3635
Trend: Downward
Sell at 1.3687 SL 1.3717 TP 1.3647

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