EURUSD
Trading strategy: stand aside
The sell-off continued down to 1.4700 – the 61.8% of the up leg from 1.4480 to 1.5060, as a result of recent losses in equity markets. The S&P500 is facing support formed by a rising trend line coming from August’s low at 978.50, as seen in the chart below. A potential bounce off the said trend line would encourage an EUR recovery against the buck, aiming the 1.48-1.49 region which is expected to provide a solid resistance for a while. Short-term sentiment remains negative while below 1.4800 and next downside objectives are set at 1.4640/50 then 1.4500, lower. Intra-day studies doesn’t show any signs of recovery yet and today’s GDP and Jobless Claims data releases in the U.S. will probably provide an important clue on the upcoming market direction. Current exchange rate is 1.4713 @07:05 GMT
Support: 1.4700, 1.4640/50, 1.4600 and 1.4550/60
Resistance: 1.4770/00, 1.4830/50 and 1.4900
- EURUSD daily chart 10-29-2009
- SP500 daily chart 10-29-2009
I will be back a bit later today with an update, including other pairs too! Have a great day and happy trading!
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