Quote of the day: “Absolute faith corrupts as absolutely as absolute power.” - Eric Hoffer
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
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
Have a great day!