Quote of the day: “Passion is absolutly necessary to achieve any kind of long-lasting success.” – Donald Trump
EURUSD – 1.3612 @06:30 GMT
Trading strategy: looking to sell at 1.3660, stop at 1.3710 (0.5% risk), 1st objective at 1.3610, 2nd objective at 1.3560
The euro has retreated on Friday on speculation that Egypt’s turmoil will affect the entire Middle East. Therefore, equities and risk sensitive pairs including EURUSD are trading lower and pressure is likely to remain high in the coming days, thus favoring the dollar, Swiss franc and yen. Technically – price pulled back from the 61.8% of 1.4280 to 1.2875 but the short-term studies remain bullish as long as current pullback doesn’t continue towards former resistance region around 1.3430 and below. Hourly charts, including the 4-hrs, are showing notable signs of weakness and it may be worth looking for intra-day short setups in the 1.3650-1.3675 zone.
Support: 1.3575/00, 1.3530, 1.3430/50, 1.3360 and 1.3300
Resistance: 1.3650/75, 1.3730/50, 1.3800 and 1.3900
Market sentiment: long term – mixed, medium term – mixed, short term – bullish, intraday – bearish
- EURUSD daily chart 1-31-2011
- EURUSD hourly chart 1-31-2011
Have a great day and good luck trading. I’ll probably be back later today, posting some interesting setups
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