Quote of the day: If you take more chances, you’ve got more chances to win. … If you have a low tolerance for risk, you’ve got a lower probability of success. – James Carville
EURUSD
Trading strategy: standing aside
The euro retraced from yesterday’s top side around $1.400 where it was testing the resistance formed by connecting last 2 weeks highs. Despite showing weakness during both EU and US trading sessions yesterday, the pair still maintains a bullish stance on short term basis, as it found support on the 61.8% fib retracement value of last upward swing from Friday’s low to yesterday’s high – 1.3805 to 1.4010, as seen in the chart below. Today’s recovery is also caused by Aussie’s rally on RBA’s less expected rate hike by 25-bps to 4.75%. Choppy movement is likely ahead of Fed’s QE decision tomorrow. The Fed is expected to end months of speculation by announcing the details of a new round of quantitative easing. I remain bullish on the EURUSD, especially if the pair will manage to break above $1.400 in the coming days. My yesterday’s plan to buy on pullback to 1.3950 wasn’t a good one as the euro failed to reach any decent targets before collapsing below 1.39. Current exchange rate is 1.3930 @06:50 GMT
Support: 1.3900, 1.3850/60 and 1.3800
Resistance: 1.400/10, 1.4050 and 1.4150/60
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intra-day – bullish
- EURUSD 4hrs chart 11-2-2010
- EURUSD hourly chart 11-2-2010
More trading setups
AUDUSD
- AUDUSD 4hrs chart 11-2-2010
GBPUSD
- GBPUSD 4hrs chart 11-2-2010
EURCAD
- EURCAD 4hrs chart 11-2-2010
Have a nice day
