EUR/USD 1.2350 – 20 May 2010

EUR/USD Open 1.2389 High 1.2431 Low 1.2143 Close 1.2424
After a small descend, the recovery of the the Euro continued on Wednesday with the next debt measures taken by EU. Euro/Dollar climbed from 1.2143 to 1.2431 yesterday, in converse with the Interbank sentiment projection, at around -2%, closing the day at 1.2424. On the 1 hour chart the downward channel is still valid and looking good. Break above the nearest resistance and yesterday’s top at 1.2431 may trigger further recovery of the Euro. Going bellow yesterday’s bottom and first support at 1.2143, however, should confirm continuation of the bearish trend, towards next target 1.2064. Today’s focus is on Germany PPI, USA Jobless claims, Leading indicators, Philadelphia Fed index, and M2 money supply at 6, 12:30, 14 and 20:30 GMT respectively. Quotes are moving above the 20 and 50 EMA on the 1 hour chart, indicating bullish pressure. The value of RSI indicator is positive and declining, MACD is positive and calm, while CCI is just above the 100 line on the 1 hour chart, giving overall light long signals.

Technical resistance levels: 1.2431 1.2574 1.2681
Technical support levels: 1.2143 1.2064 1.1970

Trading range: 1.2340 – 1.2400
Trend: Upward
Buy at 1.2350 SL 1.2320 TP 1.2390

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