EUR/USD Rebounds On ECB Cut And Berlusconi Pullback
ZIFX.com | Jan 08, 2013 12:41AM ET
On Monday EUR/USD increased with 110 pips. The European currency appreciated from 1.3015 to 1.3129 yesterday, not matching the negative money flow sentiment at over -15%, closing the day at 1.3113. This morning the euro lifted slightly further, reaching 1.3140.
On the 1-hour chart the upward channel has turned into range trading, while on the 3-hour chart quotes have returned into the wide trading scope. Break above the nearest resistance and today's top at 1.3140 may trigger further strengthening of the euro. Going below yesterday's bottom and first support at 1.3015, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2900.
Today's focus is on EU17 Retail sales, Economic sentiment index and Unemployment, Germany Manufacturing orders, and US Redbook and Consumer credit, at 10, 11, 13:55, and 20 GMT respectively.
Quotes are moving above the 20 and just below the 50 EMA on the 1-hour chart, indicating short-term bullish and medium-term slim bearish pressure. The value of the RSI indicator is positive and calm, MACD is negative and quiet, while CCI has crossed up the 100 line on the 1-hour chart, giving over all neutral signals.
Technical resistance levels: 1.3140 1.3254 1.3380
Technical support levels: 1.3015 1.2900 1.2778
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