Quote of the day: In 27 of the 28 cases, sky-high prices eventually returned to earth, frequently making a small crater as they landed. - Jim Grant
EURUSD
Trading strategy: standing aside
The euro is down 300 points from recent top at 1.4160 – this being the largest correction in 5 weeks. Current dollar’s recovery across the board is most likely a corrective cycle which is normal, considering how rapidly it lost value in the last months. Short-term sentiment is bullish as there’s still enough room to the downside until negative momentum would kick in. If dollar’s recovery will extend in the coming trading sessions – next support to keep an eye on comes around 1.3790/00, which served as a stable bottom last week but also a resistance two weeks ago. On the upside – 1.400 will probably trigger some selling into strength. Current exchange rate is 1.3866 @05:50 GMT
Support: 1.3850/80, 1.3790/00 and 1.3680/00
Resistance: 1.3950/75, 1.400, 1.4160 and 1.4200
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intra-day – bearish
- EURUSD 4hrs chart 10-18-2010
More trading setups
Gold
- XAUUSD 4hrs chart 10-18-2010
AUDUSD
- AUDUSD 4hrs chart 10-18-2010
USDJPY
- USDJPY 4hrs chart 10-18-2010
Have a great day!
