EUR/USD Forms A Down And Up Pattern This Week

On Wednesday Euro/Dollar increased significantly with 190 pips on signs of European debt solving. The European currency appreciated from 1.3024 to 1.3218 yesterday, not matching the positive Interbank sentiment projection at over +17%, closing the day at 1.3082. This morning the Euro is trading quietly, at the upper end of yesterday's range for now. On the 1 hour chart the upward channel is on hold, while on the 3 hour chart range trading is forming. Break above the nearest resistance and yesterday's top at 1.3218 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.3024, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3000. Today's focus is on EU17 PPI at 10 GMT. Quotes are moving just bellow the 20 and above the 50 EMA on the 1 hour chart, indicating short term slim bearish and medium term bullish pressure. The value of the RSI indicator is negative and declining, MACD is positive and calm, while CCI has thinly crossed down the 100 line on the 1 hour chart, giving overall all light short signals.

Technical resistance levels: 1.3218 1.3330 1.3453

Technical support levels: 1.3024 1.3000 1.2883

Trading range: 1.3185 - 1.3110

Trend: Downward

Sell at 1.3172 SL 1.3202 TP 1.3122

Yesterday we made +43 pips profit on EUR/USD from the following sent to clients only signal:

5:20 GMT Sell EUR/USD at 1.3069 SL 1.3095 TP 1.3019, exit sent at 7:05 GMT+1.

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