Quote of the day: “The policy of being too cautious is the greatest risk of all” - Jawaharlal Nehru
EURUSD – 1.4209 @07:00 GMT
Good morning. Friday’s recovery to $1.4335 was corrective and resistance formed by the 61.8% retrace value of last down leg from 1.4495 to 1.4075 is intact, therefore the downside remains favored as the European governments failed to agree on Greek aid payout. Interim support around 1.4200 is currently under pressure and a break lower should result in more weakness towards recent bottom at 1.4075 and 1.400 eventually. I remain bearish on EURUSD as tension in Greece will likely limit significant gains – selling into minor rallies being my primary plan at this point.
Trading strategy: looking to sell on potential rally to 1.4260, initial stop at 1.4320 (0.5% risk), target open
Support: 1.4200, 1.4100, 1.4070, 1.4000/20 and 1.3900
Resistance: 1.4250/70, 1.4300 and 1.4330/50
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish
- EURUSD hourly chart 6-20-2011
Good luck trading
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Nice and simple exposition of the value of fibs. Also, curiously, the market again turned if you measure the fibs from that low to the 4340.