Euro Sell-Off Continues Before Summit

Quote of the day:“Always imitate the behavior of the winners when you lose.” – George Meredith

Good morning. The euro starts the week under pressure before the Euro-zone summit, testing intraday support into the 1.4000-1.4050 region against the US dollar and remaining in free-fall mode against the CHF, reaching record lows on a daily basis. Below this interim support zone at 1.400-1.4050 there’s another layer around 1.3850 where the pair found bids last week. Given current market conditions, I think it’s best to look for selling opportunities instead of buying dips, as pressure is likely to stay up in the coming days.

Trading strategy: looking to sell on potential pullback to 1.4100, initial stop at 1.4160 (0.5% risk), target open

Support: 1.4050, 1.4000, 1.3900 and 1.3840/60
Resistance: 1.4100, 1.4180/00 and 1.4250/80
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish

EURUSD daily chart 7-18-2011

And here’s an update to the Setups posted on Friday; they’re all looking good

EURGBP

EURGBP daily chart 7-18-2011

EURCAD

EURCAD daily chart 7-18-2011

AUDJPY

AUDJPY daily chart 7-18-2011

Silver

Silver daily chart 7-18-2011

have a great day!

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Post tags: AUDJPY, EURCAD, EURGBP, Euro-zone crisis, EURUSD, Greece, Silver