EUR/USD 1.2963 – 20 July 2010

EUR/USD Open 1.2940 High 1.2983 Low 1.2873 Close 1.2942

After starting with downward correction during the Asian session, on Monday Euro/Dollar continued ascending. The European currency appreciated from 1.2873 to 1.2983 yesterday, matching the positive Interbank sentiment projection, at only +0.5%, closing the day at 1.2942. This morning the pair is trading hesitantly so far. On the 1 and 3 hour charts the upward channel is looking very good. Break above the nearest resistance and yesterday’s top at 1.2983 may trigger further recovery of the Euro. Going bellow yesterday’s bottom and first support at 1.2873, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2780. Today’s focus is on Germany PPI at 6 GMT. Quotes are moving just above the 20 and 50 EMA on the 1 hour chart, indicating slim bullish pressure. The value of the RSI indicator is positive and slightly inclining upwards, MACD is positive and quiet, while CCI has crossed up the 100 line on the 1 hour chart, giving overall long signals.

Technical resistance levels: 1.2983 1.3100 1.3240
Technical support levels: 1.2873 1.2780 1.2700

Trading range: 1.2950 – 1.3015
Trend: Upward
Buy at 1.2963 SL 1.2933 TP 1.3003

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