Quote of the day: Things do not change; we change. – Henry David
EURUSD
Trading strategy: standing aside
The euro trades down around last week’s open price as eurozone debt worries resurface. Dollar’s short covering post QE2 announcement is also helping the buck to gain some ground – recovering 360 points in the last two days. Looking at the 4-hrs chart – we can see that a temporary support is found around 1.3940/50 at time of writing – formed by the 61.8% fib retracement value of last 2 weeks upward swing, from 1.3730 to 1.4280. While this support level holds, a recovery is likely and 1.4050 shouldn’t provide such a strong barrier, although the said level was a pain for the bulls in October. Short-term sentiment is mixed, both technically and fundamentally. Well, if you really look to short the dollar – it’s better to look at some better performing currencies such as the Swiss franc, the Japanese yen or the AU & NZ dollars. Current exchange rate is 1.3955 @06:40 GMT
Support: 1.3950, 1.3900 and 1.3800
Resistance: 1.400, 1.4050 and 1.4150
Market sentiment: long term – mixed, medium term – bullish, short term – mixed, intra-day – bearish
- EURUSD 4hrs chart 11-8-2010
More trading setups
Gold
- XAUUSD 4hrs chart 11-8-2010
AUDJPY
- AUDJPY 4hrs chart 11-8-2010
CADJPY
- CADJPY 4hrs chart 11-8-2010
Have a nice week and good luck trading
