EUR/USD 1.2608 – 12 July 2010

EUR/USD Open 1.2644 High 1.2719 Low 1.2587 Close 1.2635

On Friday Euro/Dollar continued climbing at first, than dropped, loosing all gains for the last 2 days. The European currency appreciated to 1.2719 on Friday, in line the Interbank sentiment projection, at nearly +2%, than depreciated down to 1.2616, closing the week at 1.2635. This morning the pair continued weakening down to 2587. On the 1 and 3 hour charts quotes are testing the lower limit of the upward channel. Break above the nearest resistance and Friday’s top at 1.2719 may trigger further recovery of the Euro. Going bellow today’s bottom and first support at 1.2623, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2500. There are no major economic events for EU today. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of the RSI indicator is negative and inclining upwards, MACD is negative and declining, while CCI has crossed down the 100 line on the 1 hour chart, giving overall light short signals.

Technical resistance levels: 1.2719 1.2800 1.2912
Technical support levels: 1.2587 1.2500 1.2402

Trading range: 1.2620 – 1.2555
Trend: Downward
Sell at 1.2608 SL 1.2638 TP 1.2568

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