EUR/USD 1.2890 – 21 July 2010

EUR/USD Open 1.2892 High 1.3022 Low 1.2842 Close 1.2882

After partial continuation of the ascending impulse, on Tuesday Euro/Dollar sharply dropped. The European currency depreciated from 1.3022 to 1.2842 yesterday, not matching the neutral Interbank sentiment projection, at +0.5%, closing the day at 1.2882. This morning the pair is trading tentatively so far. On the 1 and 3 hour charts quotes are testing the lower limit of the upward channel. Break above the nearest resistance and yesterday’s top at 1.3022 may trigger further recovery of the Euro. Going bellow yesterday’s bottom and first support at 1.2842, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2730. There are no major economic events for EU today. Quotes are moving just bellow the 20 and 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is positive and quiet, MACD is positive and calm, while CCI has crossed down the 100 line on the 1 hour chart, giving overall light short signals.

Technical resistance levels: 1.3022 1.3113 1.3240
Technical support levels: 1.2842 1.2730 1.2600

Trading range: 1.2900 – 1.2840
Trend: Downward
Sell at 1.2890 SL 1.2920 TP 1.2850

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