Quote of the day: What’s the difference between Investment Bankers and London Pigeons? The Pigeons are still capable of making deposits on new BMW’s — Rob, a trader from the U.K.
EURUSD
Trading strategy: small short at 1.2590, stop at 1.2660 (0.5% risk), objective at 1.2490
Not much is new under the sun since yesterday regarding the euro — which found resistance around 1.2700 on its attempt to recover but was also supported by 1.2600 – 50% retracement ratio of last upward swing, from 1.1875 to 1.3330. Downside pressure remains high as long as a recovery doesn’t threaten the 1.2900 mark. Further weakness is also favored by Ireland’s long-term sovereign credit rating, which was cut to AA- by Standard & Poor’s yesterday on concern about the rising cost of supporting the country’s banks. Gold rallied after pulling back below 1210, reaching a session high at 1235 on speculation that further signs of an economic slowdown makes gold the most attractive asset to preserve their wealth. Today’s key events in the economic calendar are the German Ifo and U.S. Durable Goods and New Home Sales data releases later today. Current exchange rate is 1.2637 @05:40 GMT
Support: 1.2600, 1.2500 and 1.2430/50
Resistance: 1.2700/20, 1.2750/70, 1.2850 and 1.2900/20
Market sentiment: long term – bearish, medium term – slightly bullish, short term – bearish, intra-day – bearish
- EURUSD 4hrs chart 8-25-2010
More trading setups
USDJPY
- USDJPY 4hrs chart 8-25-2010
GBPUSD
- GBPUSD 4hrs chart 8-25-2010
USDCAD
- USDCAD daily chart 8-25-2010
NZDUSD
- NZDUSD daily chart 8-25-2010
Gold
- Gold 4hrs chart 8-25-2010
Have a great day and good luck trading!
Thanks for analysis! I have strong MACD divergence (12,26,9) on EURUSD H4..I know it's not daily TF and fundamentals are not in favor of euro but still..possible move to 1,2750 and then down? what do you think?
yes, pretty much doable. That kind of moves (about 100 or slightly more points in a direction or another) are not influenced by any fundamentals but rather news/intra-day noise. We can get a spike of 100 points faster than we can ask "what the heck is going on?" :)
I am a bit busy nowadays so won't watch the charts too often but I will sell on first decent sign of weakness – preferably during the US session.
Cheers