Tuesday, 27 November 2012

EUR/USD Heads Up After Greek Debt Solution

On Monday Euro/Dollar continued increasing insignificantly with 60 pips. The European currency appreciated from 1.2943 to 1.3008 yesterday, matching the positive money flow sentiment at nearly +22%, closing the day at 1.2968. This morning the Euro is trading quietly, with movements at the upper half of yesterday's range for now.

On the 1 hour chart range trading has formed, while on the 3 hour chart the upward channel has turned into wide trading scope. Break above the nearest resistance and yesterday's top at 1.3008 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.2943, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2828.

Today's focus is on Germany Import prices, US Durable goods orders, Redbook, and Consumer confidence, at 6, 8:30, 13:30, 13:55 and 15 GMT respectively.

Quotes are moving above the 20 and 50 EMA on the 1 hour chart, indicating bullish pressure. The value of the RSI indicator is positive and calm, MACD is thinly positive and inclining upwards, while CCI has crossed up the 100 line on the 1 hour chart, giving over all light long signals.

Technical resistance levels: 1.3008 1.3120 1.3244
Technical support levels: 1.2943 1.2828 1.2700

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