EUR/USD Pressured By Cyprus Crises

EUR/USD Pressured By Cyprus Crises

EUR/USD Open 1.2902 High 1.2956 Low 1.2877 Close 1.2893

On Thursday Euro/Dollar continued trading within almost 80 pip range. The European currency depreciated from 1.2956 to 1.2877 yesterday, matching the negative money flow sentiment at nearly -15%, closing the day at 1.2893. This morning the Euro is trading quietly, with movements at the lower end of yesterday's range for now.

On the 1 hour chart the downward channel has renewed, while on the 3 hour chart new downward channel has formed. Break above the nearest resistance and yesterday's top at 1.2956 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.2877, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2765.

Today's focus is on France Business confidence, and Germany IFO business climate index, assessment and expectations, at 7:45 and 9 GMT respectively.

Quotes are moving above the 20 and just bellow the 50 EMA on the 1 hour chart, indicating short term bullish and medium term slim bearish pressure. The value of the RSI indicator is positive and calm, MACD is negative and quiet, while CCI has crossed up the 100 line on the 1 hour chart, giving over all neutral to light long signals.

Technical resistance levels: 1.2956 1.3072 1.3200
Technical support levels: 1.2877 1.2765 1.2640