EUR/USD 1.2285 – 27 May 2010

EUR/USD Open 1.2171 High 1.2340 Low 1.2153 Close 1.2181
After a partial correction, the Euro continued weakening on Wednesday, as expected. Euro/Dollar depreciated from 1.2340 to 1.2153 yesterday, in line with the Interbank sentiment projection, at around -10%, closing the day at 1.2181. On the 1 hour chart the downward trend is still on hold. Break above the nearest resistance and yesterday’s top at 1.2340 may trigger further rising of the Euro. Going bellow yesterday’s bottom and first support at 1.2153, however, should confirm continuation of the bearish trend, towards next objective downwards 1.2153. Today’s focus is on Italy Business confidence, and Germany CPI and HICP 7:30 and 12:45 GMT respectively. Quotes have just crossed up the 20 and 50 EMA on the 1 hour chart, indicating short term upward impulse. The values of RSI and CCI indicators are positive and rising, while MACD is negative and inclining upwards on the 1 hour chart, giving overall light long signals.

Technical resistance levels: 1.2340 1.2413 1.2522
Technical support levels: 1.2153 1.2050 1.1961

Trading range: 1.2295 – 1.2235
Trend: Downward
Sell at 1.2285 SL 1.2315 TP 1.2245

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