EUR/USD 1.2577 – 7 July 2010

EUR/USD Open 1.2615 High 1.2658 Low 1.2569 Close 1.2624

On Tuesday Euro/Dollar increased insignificantly. The European currency appreciated from 1.2569 to 1.2658 yesterday, in line the Interbank sentiment projection, at around +4%, closing the day at 1.2624. This morning, after loosing yesterday’s gains, the pair is trying to resume recovery. On the 1 hour chart the upwards channel is making renewal efforts, and on the 3 hour chart new upward channel is forming. Break above the nearest resistance and yesterday’s top at 1.2658 may trigger further recovery of the Euro. Going bellow yesterday’s bottom and first support at 1.2569, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2480. Today’s focus is on EU 16 GDP Q1 and Germany Mfgng orders at 9 and 10 GMT respectively. Quotes are moving just bellow the 20 and above the 50 EMA on the 1 hour chart, indicating short term bearish and medium term bullish pressure. The value of the RSI indicator is negative and declining, MACD is positive and consolidating, while CCI has crossed down the 100 line on the 1 hour chart, giving overall light short signals.

Technical resistance levels: 1.2658 1.2743 1.2850
Technical support levels: 1.2569 1.2480 1.2400

Trading range: 1.2565 – 1.2630
Trend: Upward
Buy at 1.2577 SL 1.2547 TP 1.2617

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