EUR/USD At 2 Year Low On Spain Uncertainty

July 25, 2012 - PRLog -- On Tuesday Euro/Dollar continued decreasing with 95 pips. The European currency depreciated from 1.2138 to 1.2041 yesterday, matching the negative money flow sentiment at nearly -19%, closing the day at 1.2059. 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 resumed, while on the 3 hour chart the downward channel looks good. Break above the nearest resistance and yesterday's top at 1.2138 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.20204166, however, would confirm continuation of the bearish trend, towards next objective downwards 1.1926.

Today's focus is on Germany IFO business climate index, Italy Consumer confidence, and France Unemployment, at 8 and 16 GMT respectively.

Quotes are moving just bellow the 20 and 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is negative and calm, MACD is negative and quiet too, while CCI has thinly crossed down the 100 line on the 1 hour chart, giving over all light short signals.

Technical resistance levels: 1.2138 1.2255 1.2380
Technical support levels: 1.2041 1.1926 1.1800