EUR/USD 1.2715 – 7 May 2010

EUR/USD Open 1.2627 High 1.2855 Low 1.2527 Close 1.2623
The Euro continued depreciating significantly on Thursday, going bellow 1.26. Euro/Dollar decreased from 1.2855 to 1.2527 yesterday, in line with the Interbank sentiment projection, at nearly -2%, closing the day at 1.2623. On the 1 hour chart the downward channel is still valid, as European crisis problems deepen. Break above the nearest resistance and yesterday’s top at 1.2855 may trigger further recovery of the Euro. Going bellow yesterday’s bottom and first support at 1.2527, however, should confirm continuation of the bearish trend, towards next target 1.2430. Today’s focus is on Germany Industrial production at 10 GMT. Quotes are moving just above the 20 and bellow the 50 EMA on the 1 hour chart, indicating mostly bearish pressure. The values of all RSI and CCI indicators are positive and calm, while MACD is negative and inclining upwards on the 1 hour chart, giving overall light long signals.

Technical resistance levels: 1.2855 1.2983 1.3170
Technical support levels: 1.2527 1.2430 1.2318

Trading range: 1.2725 – 1.2655
Trend: Downward
Sell at 1.2715 SL 1.2745 TP 1.2665

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