Quote of the day: Doubts are more cruel than the worst of truths. — Moliere
Trading strategy: looking to sell at 1.2800, stop at 1.2870(1% risk), objective at 1.2640
The euro is back near its recent low as Monday’s correction was just a new opportunity for sellers to increase their bets against the euro. A short-term bounce of some sort will most likely face the same selling pressure and strength will be short-lasted, maintaining the current bearish structure intact. Intra-day sentiment is bearish too since the euro failed to breach 1.2750 even though it was tested several times yesterday. Break above 1.27 is required to signal a change in current intra-day view, but short-term studies will not change – more than 5 big figures to the upside being required to get into the neutral territory. Despite yesterday being a rather calm range comparing to what we’ve seen last week and Monday, extreme volatility is just around the corner. Current exchange rate is 1.2637 @05:56 GMT
- EURUSD 4hrs chart 5-12-2010
Support: 1.2600, 1.2500/25 and 1.2400
Resistance: 1.2700, 1.2750, 1.2800, 1.2900 and 1.3050
Market sentiment: long term – bullish, medium term – bearish, short term – bearish, intra-day – bearish
Other setups
Gold
- Gold daily chart 5-12-2010
GBPUSD
- GBPUSD daily chart 5-12-2010
Have a good day!
