EUR/USD 1.2210 – 19 May 2010

EUR/USD Open 1.2185 High 1.2437 Low 1.2144 Close 1.2200
After partial recovery on Tuesday on the next help package for Greece, the Euro continued decreasing. Euro/Dollar climbed to 1.2437, from where depreciated down to 1.2157 yesterday, in line with the Interbank sentiment projection, at nearly -4%, closing the day at 1.2200. On the 1 hour chart the downward channel is valid and in good shape for now. Break above the nearest resistance and yesterday’s top at 1.2437 may trigger further recovery of the Euro. Going bellow today’s bottom and first support at 1.2144, however, should confirm continuation of the bearish trend, towards next target 1.2064. Today’s focus is on USA CPI and USA FOMC meeting at 12:30 and 18 GMT respectively. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of RSI indicator is negative and inclining slightly upwards, while MACD and CCI are negative and calm on the 1 hour chart, giving overall short signals.

Technical resistance levels: 1.2437 1.2574 1.2681
Technical support levels: 1.2144 1.2064 1.1970

Trading range: 1.2220 – 1.2160
Trend: Downward
Sell at 1.2210 SL 1.2240 TP 1.2170

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