Euro Dollar: The depreciation of the euro still at the heart of concerns Monday, June 21, 2010 at 11:12

The configuration remains heavily bearish medium term the Euro against the Dollar. The technical rebound of the cross, observed these days, seems to have culminated in the vicinity of $ 1.2470. The rebound current Euro / Dollar exchange due to the announcement on Saturday by the Chinese government of a future easing of its currency regime. The Yuan, or renminbi will now be allowed to fluctuate against the dollar. The other important information at the beginning of the week comes from the Russian news channel Russia Today. The latter aired an interview with the President of the European Central Bank, where Jean-Claude Trichet said: "I always said that the euro is a very credible currency, whose value lies on price stability throughout a period of 11 years and a half.
Indecision now palpable in the halls of markets, including equity markets where the major indices are close to important resistance levels. The technical analysis of U.S. indexes invites us to the utmost caution. If one were to attend a new recession of shares, the single currency, also classifiable assets at risk, would surely suffer a rush of investors to the dollar shelter. Despite the reassuring words quoted above by the President of the European Central Bank.

Around 11:30 am, spot EURUSD is approximately 1.24.

From a graphical perspective, given in daily, as long as 1.2672 are not exceeded the momentum remains bearish in the medium term. This level corresponds to both: to 23.6% retracement of the decline since December 2009 on top of the cross but also to a significant level of resistance chart. In given time, the upward sloping visible in black on the graph supports the appreciation of the Euro against the Dollar. However, there is a slowdown of this dynamic. A break of this oblique and breach of 1.2353 $ 1.2328 $ and should validate the establishment of a reversal on the spread.
In addition, Japanese candles, the emergence and validation on the hourly chart of a figure turning confirm our recommendation.
In this context, the team Tradingsat.com delivers a negative opinion for the next few hours and offers traders to initiate short positions in the Euro / Dollar 1.2242 targeting, while placing stop loss at- above 1.2470.

Hourly data chart:



Daily data chart: