Quote of the day: “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.” – Sam Ewing
EURUSD
Trading strategy: small size short on pullback to 1.3300, stop at 1.3360, 1st objective at 1.3250, 2nd objective at 1.3180
The euro fell sharply against the dollar after Moody’s put Spain on review for a possible downgrade, reviving euro-zone debt worries. Apart from that – protesters clashing with riot police in Athens, torching cars during a strike against the austerity measures, was also dragging the euro lower. Technically, Tuesday’s reversal candle was suggesting renewed weakness, as 1.3440 held, and the mentioned events encouraged the move lower. As mentioned in my article yesterday, selling at 1.3370 on intra-day pullback was a good plan as the euro resumed its decline around that level and it didn’t look back. Minor support formed by the rising trend line from 1.2975 through 1.3180 was breached around 1.3250 and next support, provided by last week’s bottom is on focus at time of writing, around 1.3180. An upside correction will probably be capped by 1.3300 where next intra-day resistance resides. The EU leaders are meeting today in Brussels to discuss further steps to fight the debt crisis which is threatening to spread to Spain and Portugal. Other key events in the economic calendar today are US Initial Jobless Claims and German Manufacturing PMI. Current exchange rate is 1.3224 @06:48 GMT
Support: 1.3180/00, 1.3100/25 and 1.2980/00
Resistance: 1.3250, 1.3300, 1.3400, 1.3440 and 1.3500
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish
- EURUSD 4hrs chart 12-16-2010
More trading setups
GBPUSD
- GBPUSD daily chart 12-16-2010
USDJPY
- USDJPY daily chart 12-16-2010
EURCHF
- EURCHF daily chart 12-16-2010
Have a nice day and good luck trading
