Quote of the day: “Definition of Statistics: The science of producing unreliable facts from reliable figures.” – Evan Esar
EURUSD
Trading strategy: standing aside
The euro fell to $1.29 after the NFP report on Friday and holds under pressure today amid debt contagion fears. German magazine Der Spiegel reported over the weekend that Germany and France are urging Portugal to accept a financial aid, in order to prevent further debt contagion in Europe. Portugal, Spain and Italy are all scheduled to auction bonds this week, therefore the euro is likely to remain under pressure. Technically – former support around $1.300 formed by December’s open is providing resistance, followed by the rising trend line started in late August, connecting last higher lows up to 1.3100 – where it was breached last week. Next downside objective might be 1.2600 – August bottom. Other potential support point is seen closer to current trading levels, at 1.2800 – the 61.8% retrace value of euro’s recovery from 1.1875 to 1.4280. Today’s most notable event in the economic calendar is Trichet’s speech at 11:30 GMT. Current exchange rate is 1.2904 @06:37 GMT
Support: 1.2800, 1.2700 and 1.2600
Resistance: 1.2980/00, 1.3100, 1.3150 and 1.3200
Market sentiment: long term – mixed, medium term – bearish, short term – bearish, intraday – bearish
- EURUSD daily chart 1-10-2011
- EURUSD weekly chart 1-10-2011
More charts and trading setups
USDJPY
- USDJPY daily chart 1-10-2011
GBPUSD
- GBPUSD 4hrs chart 1-10-2011
AUDUSD
- AUDUSD daily chart 1-10-2011
Have a great and profitable week!
