Euro’s recovery not convincing

Quote of the day: In truth, the gold standard is already a barbarous relic. – John Maynard Keynes

EURUSD

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

EURUSD 4hrs chart 10-19-2010
EURUSD 4hrs chart 10-19-2010

More trading setups

GBPUSD

GBPUSD 4hrs chart 10-19-2010
GBPUSD 4hrs chart 10-19-2010

AUDJPY

AUDJPY daily chart 10-19-2010
AUDJPY daily chart 10-19-2010

EURJPY

EURJPY 4hrs chart 10-19-2010
EURJPY 4hrs chart 10-19-2010

USDJPY

USDJPY 4hrs chart 10-19-2010
USDJPY 4hrs chart 10-19-2010

Have a great day!

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