FOREX: Euro Dollar: A depreciation of the euro is possible in the short term Tuesday, July 27, 2010 at 11:52

After having stagnated following the announcement of good results from European banks to stress tests, currency traders have finally decided to take long positions on the cross. The euro has appreciated against the dollar but also against the yen.
At 11:50, the spot is approximately 1.2980 Euro Dollar $ Euro Yen cross and traded around the 113.40 yen.
In daily data, the cross is located in an ascending channel (shown in black). This provides a level of support around the $ 1.2860. $ 1.3125 The act of resistance. This level corresponds to a 38.20% retracement of the decline between December 2009 and the low points in June 2010.
In the medium term, we remain bearish as long as $ 1.3125 are not exceeded in the direction of $ 1.2733 (+ graphic level moving average 20 days).
Despite the bullish momentum given day, the Euro Dollar remains under pressure. Indeed, the resistance of $ 1.3021 slows the progression of the cross. Exceeding this last bullish momentum could be achieved towards the $ 1.3125 (level of resistance to medium term).
In the short term, a return to parity in the direction of $ 1.288/60 (channel support daily) is our preferred scenario.

Hourly data chart: