EUR/USD

[peter]

On Monday Euro/Dollar again continued decreasing over 250 pips. On the 1 hour chart the quotes tested the trend line as a support again, which is still holding. Technically the European currency is still under downward pressure and if the trend line is broken downwards, we may see further descending momentum towards the key support level 1.3700. Immediate support is 1.3750. Break below this level may trigger a further bearish momentum. The nearest resistance is 1.3885, a break of which may renew the upward trend of the Euro. The CCI indicator is about to cross down the 100 line on the 4 hour and daily charts, assuming potential decreasing pressure, and up on the 1 hour chart, suggesting insignificant upward correction.

Technical resistance levels: 1.3885 1.3960 1.4100
Technical support levels: 1.3750 1.3620 1.3490
Trading range: 1.3825 - 1.3760
Trend: Downward

Have A Happy Trading:)

[Cozy101]

Data out of the US showed that Chinese divested their Treasury holdings by the largest margin in over nine years. Holding close to 3 Trillion Dollars in US debt issues, China is the largest single owner of US debt and any rapid and significant sale of this debt could serve to destabilize the Dollar.

Overall, June saw 90.7 Billion Dollars worth of inflows into US securities, of which the US Federal Reserve bought nearly 23 Billion Dollars. Despite this information, the US Dollar rose broadly on the Forex online market yesterday spurred on by continued risk aversion.