Quote of the day: In truth, the gold standard is already a barbarous relic. – John Maynard Keynes
Trading strategy: standing aside
Although it recovered some lost ground yesterday, the euro found resistance at 1.400 and was sold-off, the scenario repeating in today’s Asian session. Speaking of intra-day conditions – main question now is whether the recovery to 1.400 was corrective – the euro resuming Friday’s sell-off now, or not. It certainly seems corrective at the time of writing, so I’d hesitate on planning any long positions around these levels and rather look to sell or buy on break above 1.400 since that would confirm that uptrend resumes. Meanwhile, shorts on weakness might be considered – but carefully played as the short-term sentiment is highly bullish. The German Zew is today’s key event in the economic calendar. Current exchange rate is 1.3907 @05:55 GMT
Support: 1.3850/80, 1.3790/00 and 1.3680/00
Resistance: 1.3950/75, 1.400, 1.4160 and 1.4200
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intra-day – bearish
More trading setups
Have a great day!