EUR/USD Technical Analysis 6 May 2011

EUR/USD Open 1.4539 High 1.4899 Low 1.4508 Close 1.4537

On Thursday the Euro/Dollar plummeted with almost 400 pips as a result of weak ECB and crashing commodities. The European currency depreciated from 1.4899 to 1.4508 yesterday, not matching the positive Interbank sentiment projection at nearly +1%, closing the day at 1.4537. This morning the pair is trading quietly, with movements at the lower side of yesterday's range. On the 1 hour chart the upward channel was broken downwards, while on the 3 hour chart quotes are testing the lower limit of the upward channel. Break above the nearest resistance and yesterday's top at 1.4899 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.4508, however, would confirm continuation of the bearish trend, towards next objective downwards 1.4400. Today's focus is on Germany Industrial production at 10 GMT. 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 quiet, while CCI has thinly crossed down the 100 line on the 1 hour chart, giving overall light short signals.

Technical resistance levels: 1.4899 1.5010 1.5132

Technical support levels: 1.4508 1.4400 1.4281

Trading range: 1.4560 - 1.4490

Trend: Downward

Sell at 1.4550 SL 1.4580 TP 1.4500

Yesterday we made +20 pips profit on EUR/USD from the following signal:

5:28 GMT+1 Buy EUR/USD at 1.4864 SL 1.4838 TP 1.4914, exit sent at 7:53 GMT+1.

Total yesterday +135, as shown in details at http://www.zifx.com/performance.php.