Euro Recovers on Debt Optimism Before EU Summit

Quote of the day: “Absolute faith corrupts as absolutely as absolute power.” – Eric Hoffer

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Good morning. Big day ahead for the euro and the pair gains before the summit, testing offers around $1.4260 after Germany and France reached an agreement on Greek debt. Last week’s top is currently tested and it seems that the euro is set for more gains. This resistance region is also the 62% fib retrace value of last down leg from 1.4565 to 1.3835. Hourly – including 4hrs charts – are bullish but the dailies are still bearish and, as noted yesterday, there’s an important resistance region near 1.44 matching key support of the dollar index. I believe we’ll see a test in the coming sessions and it’s really worth keeping an eye on the said barrier. The US Initial Jobless Claims is another important event in the FX Calendar today.

Trading strategy: standing aside

Support: 1.4200, 1.4150 and 1.4100
Resistance: 1.4280/00, 1.4350/80 and 1.4400
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bullish

EURUSD 4hrs chart 7-21-2011

EURUSD 4hrs chart 7-21-2011

EURUSD daily chart 7-21-2011

EURUSD daily chart 7-21-2011

Other EUR pairs look interesting today, such as EURCHF which is finally recovering some ground after trading in a single direction for two weeks. However, it’s still very early to call a major reversal and I’m afraid this is only a correction. Next important resistance comes around 1.18

EURCHF daily chart 7-21-2011

EURCHF daily chart 7-21-2011

 

EURCHF hourly chart 7-21-2011

EURCHF hourly chart 7-21-2011

EURJPY

EURJPY 4hrs chart 7-21-2011

EURJPY 4hrs chart 7-21-2011

Have a great day!

4 thoughts on “Euro Recovers on Debt Optimism Before EU Summit

  1. Charlie

    Good morning Liviu,
    Thanks for nice set up on charts. Good looking and strategy. By the way, do you know any good site to get the real time fx news?
    Thanks. Charlie

    Reply
    1. liviu Post author

      personally I use twitter for the FX news, having a column including relevant news sources. I use twitter for this purpose because it is platform independent and I can use it on my smart phone, while on the go.
      http://talking-forex.com/ is good but it is subscription based, not free.
      http://www.forexlive.com is also very popular and I enjoy it but I for one ignore all the "market rumors" or "inside info" such as X, Y, Z bank/fund/country/Santa Claus was seen buying/selling large amount of whatever currency.

      Also check the news feed with your broker. Some brokers provide real-time news from Dow Jones / Market news International.

      Good luck

      Reply

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