EUR/USD 1.2850 – 6 May 2010

EUR/USD Open 1.2814 High 1.2995 Low 1.2795 Close 1.2790
The Euro continued depreciating on Wednesday. Euro/Dollar decreased from 1.2995 to 1.2795 yesterday, in line with the Interbank sentiment projection, at around -1%, closing the day at 1.2790. On the 1 hour chart the downward channel is gathering strength, as European crisis problems continue. Break above the nearest resistance and yesterday’s top at 1.2995 may lead to further recovery of the Euro. Going bellow yesterday’s bottom and first support at 1.2795, however, should confirm continuation of the bearish trend, towards next target 1.2700. Today’s focus is on Germany Manufacturing orders, and EU 16 ECB meeting announcement and press conference at 10, 11:45, and 12:30 GMT respectively. Quotes are moving bellow the the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of all RSI indicator is negative and declining, while MACD and CCI are negative and calm on the 1 hour chart, giving overall short signals.

Technical resistance levels: 1.2995 1.3100 1.3360
Technical support levels: 1.2795 1.2700 1.2617

Trading range: 1.2860 – 1.2790
Trend: Downward
Sell at 1.2850 SL 1.2880 TP 1.2800

Written by