Correction likely?

Quote of the day: To avoid criticism do nothing, say nothing, be nothing. — Elbert Hubbard

EURUSD

Trading strategy: long at 1.3480, stop at 1.3410(0.5% risk), 1st objective at 1.3530, 2nd objective at 1.3640

Yesterday’s bottom around 1.3570 is under pressure at time of writing as the euro is pulling back from 5-month high reached yesterday at 1.3645. The ongoing correction is seen in risk pairs too – AUDJPY testing this week’s bottom, EURJPY breaking below 113.50 which acted as a resistance before it became support and the Aussie dollar which is approaching Monday’s top side at .9640/50. However, short-term sentiment remains bullish and an extended pullback should be treated as a fresh opportunity to go long, therefore – current 60-80 points pullback definitely doesn’t indicate that the market has topped out. Immediate support is at 1.3510, backed by 1.3400 and 1.3300 a bit lower. Key upside target stands at 61.8% of 1.5145-1.1875, which is 1.3900. Today’s important events in the economic calendar are the GDP, Initial Jobless Claims and Bernanke’s speech. Current exchange rate is 1.3577 @06:10 GMT

Support: 1.3510, 1.3400/20, 1.3285/00, 1.3230 and 1.3185/00
Resistance: 1.3650, 1.3700 and 1.3800
Market sentiment: long term – bearish, medium term – bullish, short term – bullish, intra-day – bearish

More trading setups

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Have a great day and happy trading!

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Post tags: AUDJPY, AUDUSD, EURUSD, GBPUSD, USDJPY