EUR/USD Technical Analysis 6 January 2009

EUR/USD 1.3535 - 6 January
EUR/USD Open 1.3954 High 1.3944 Low 1.3504 Close 1.3916

In December the Euro/Dollar rose sharply and reached the 1.4710 resistance, but strengthening over this level could not be achieved, as the currency couple corrected. Last week the pair consolidated above 1.3795, but trading activity was low. On the weekly chart the Euro sharply climbed and tested the key area of resistance, then corrected. The risk of downward movement renewal is maintained. On the daily chart the ascending pressure will be maintained if the Euro holds above 1.3800, while RSI indicator shows the opportunity for further decline of the currency pair. On four hour chart we have a formed descending triangle and the CCI has just crossed up the 100 line, assuming a corrective upward movement towards testing of the 1.4025 resistance. Strengthening under 1.3800 will break the triangle and may lead to decreasing momentum with goals towards the region of 1.3650 and 1.3500. Strengthening above 1.4130 may provoke further rise of the Euro.
Technical resistance levels: 1.3620 1.3700 1.3925
Technical support levels: 1.3500 1.3405 1.3310

Trading range: 1.3545 - 1.3485
Trend: Downward
Sell at 1.3535 SL 1.3565 TP 1.3495

Yesterday we made +50 pips profit on EUR/USD from the following signal:
6:18 GMT Sell EUR/USD at 1.3930 SL 1.3956 TP 1.3880 TP reached at 8:11 GMT
Total yesterday +114, as shown in details at our web site.