As we pointed out in our last analysis, http://timelymarkets.blogspot.com/2010/02/el-euro-no-da-senales-tecnicas-de.html ,the euro had no many chances to experience a sustainable recovery against the North American currency. A potential rebound could essentially be brought about by the positive divergences that the indicador RSI was showed by comparison with the prices. However, the dominant element within the short term scenario was the incipient downward trend which began to develop itself by the beginning of December 2009.
So far, its key role remains unchanged. Because of that, this falling tendency has been able to interrupt this apparently short-lived rise of the European currency.
In addition, the overbought situation of Momentum provides more evidence that the euro could be pushed down by the falling scenario.
Consequently, for the time being, there is not reason to abandon bearish positions. Therefore, our recommendation is to close long positions. We establish a stop loss in 1,3900 dollars/euro.
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