EUR/USD 1.3646 - 8 February 2010

After the significant correction at the beginning of last week, Euro/Dollar continued declining from 3 February, as seen on the 15 minute chart. The descending extended on Friday, closing the week at 1.3674. The currency couple is again on the slippery bearish track for now, as seen on the 1 hour chart. The nearest support is Friday's bottom at 1.3585, and if broken down, the bearish impulse is expected to be prolonged further towards next target 1.3580. Any upward correction should not come unexpected after such drastic descends, but only convincing break above the upper limit of the downward channel, currently around 1.3746 may seriously threaten the integrity of the downward channel and possibly lead to recovery of the European currency. Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish perspective. The values of RSI indicator is negative, while MACD and CCI are neutral and leaning upwards on the 1 hour chart, giving overall mixed signals.

Technical resistance levels: 1.3746 1.3854 1.4018

Technical support levels: 1.3585 1.3472 1.3380

On Friday we made +50 pips profit on EUR/USD from the following signal:

5:35 GMT Sell EUR/USD at 1.3711 SL 1.3737 TP 1.3661 TP hit 8:15 GMT

Total on Friday +183, as shown in details at www.zifx.com/performance.php.