Euro Zone Leaders Meeting Today – EURUSD Under Pressure

Quote of the day: “It is not enough to aim; you must hit.” – Italian Proverb

EURUSD – 1.3800 @07:46 GMT

Good morning. Weakness is still favored as 1.3850 provides resistance now and decent recovery signs are not visible at time of writing. Intra-day studies remain will remain bearish as long as upside pullbacks will run out of steam into the 1.3850/80 where resistance stands. European leaders will meet in Brussels today to agree a “competitiveness pact” and will push Portugal to announce reforms to increase market confidence. Other important event in the Forex Calendar is the US Retail Sales figure, to be released at 13:30 GMT. On near-term basis I believe that the EUR is vulnerable to more downside action and a weekly close into the 1.37 region will negate last week’s breakout pattern. Looking for intra-day selling opportunities on potential pullback to 1.3850 seems a good idea right now.

Trading strategy: looking to sell on potential pullback to 1.3850, stop at 1.3910 (0.5% risk), objective at 1.3750

Support:  1.3750/80, 1.3700 and 1.3600
Resistance: 1.3850/80, 1.3900, 1.3950 and 1.400/30
Market sentiment: long term – mixed, medium term – bullish, short term – slightly bearish, intraday – bearish

Have a good day and good luck trading

More in Analysis and forecasts »
Post tags: Euro-zone crisis, EURUSD