Quote of the day: Experienced traders control risk, inexperienced traders chase gains. — Alan Farley
EURUSD
Trading strategy: small long at 1.2820, stop at 1.2760 (0.5% risk), 1st objective at 1.2870, 2nd objective at 1.2920
$1.3 is getting closer as the euro rallied yesterday, overcoming the $1.2800 barrier. Even though there are no signs of a pullback yet, it is Friday and some profit taking will probably limit gains towards 1.3. Short-term sentiment remains highly bullish and a change of mid-term studies should be confirmed if 1.3 breaks soon. On intra-day basis, pullbacks below 1.29 are expected to face support around 1.2830/50 and a bit lower – at 1.2785/00 which served as resistance. Today’s most notable event in the economic calendar is the Consumer Price Index at at 13:30 GMT. It is somehow funny to admit it but the euro looks overbought - I wasn’t expecting to say it anytime soon as I got used to its multi-month collapse. Time will tell if current recovery is corrective or not, and we will most likely find out very soon. Current exchange rate is 1.2905 @05:55 GMT
Support: 1.2900, 1.2830/50, 1.2785/00 and 1.2700
Resistance: 1.2950, 1.3000 and 1.3100
Market sentiment: long term – bearish, medium term – slightly bearish, short term – bullish, intra-day – bullish
More setups
GBPUSD
- GBPUSD 4hrs chart 7-16-2010
EURCHF
- EURCHF 4hrs chart 7-16-2010
EURGBP
- EURGBP daily chart 7-16-2010
Gold
- Gold 4hrs chart 7-16-2010
Have a great weekend!
