EUR/USD Daily Forecast 06.02

The Euro has declined on yesterday as most medium term studies indicated, breaking the support levels at 1.4800, 1.4750 and all the way down to 1.4625. Support starts now at 1.4625 backed by 1.4590 and 1.4560. Resistance emerges at 1.4660 followed by 1.4690 and 1.4740. Daily studies are bearish and the Euro has to recover above 1.4750 in order to signal a reversal and a resume of the uptrend. Hourly charts are slightly bullish at the time of this report and we expect the Euro to advance higher towards 1.4700 where it may face a strong resistance. The downside seem favored still and the US dollar may advance versus the Euro, bringing the 1.44 area on focus where the next mid-term support is seen (the trendline started at 1.4310 on December 2007 advancing through January's low of 1.4365). The is no sign of an Euro recovery yet therefore we would like to avoid long positions and rather stay on the short side, changing our view in case of a break above the mid 1.47 area. Current quote is 1.4649 @07:05 GMT

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