Quote of the day: “A man may well bring a horse to the water but he cannot make him drink.” - John Heywood
Good morning. I am aware that not all of you are regular readers of posts in the Links category, so I’m letting you know that I can share some Google+ invitations with you. If you want one just let me know by posting a comment below using your gmail address or by dropping me a quick line with the gmail address you’d like to use.
EURUSD – 1.3880 @07:20 GMT
The euro is still in free-fall mode as Italy is in focus on concern that the Euro-zone crisis will spread to larger economies. However, EURUSD is still trading at high levels on YTD basis, but the EURCHF is the real horror chart as the pair is trading to record lows and doesn’t seem to take a breath yet – currently testing bids around 1.1645. Median retracement value of this year’s EURUSD rally from 1.2870 to 1.4940 is being tested today at 1.3900 and it looks fragile so far, now that we’re already below the 1.400 psychological barrier and also a major support/resistance line formed by the peaks of 2010′s October-November, also recent support since breaking above in March (see weekly chart below). I’m not going to question whether this 50% retracement value is going to hold or not, but one thing is certain: things are turning uglier. Looking at intra-day charts – in case we’ll see a pullback to the upside, I guess that 1.400-1.4050 will provide a decent selling point in the next trading sessions. The US Trade Balance figure and FOMC Meeting Minutes are the key events in the economic calendar today.
Trading strategy: looking to sell on pullback to 1.400, initial stop at 1.4060 (0.5% risk), target open
Support: 1.3900, 1.3850 and 1.3800
Resistance: 1.3975, 1.4000/30, 1.4050 and 1.4100
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish
- EURUSD hourly chart 7-12-2011
- EURUSD daily chart 7-12-2011
- EURUSD weekly chart 7-12-2011
have a good day!
I would see EUR multiful support zone at 1.3700-1.3750 (Uptrend support line from 1.1872, downtrend support from 1.4879 and Fibo 38.2 from 1.1872 to 1.4879) If this zone is broken, I would see EUR reversal.
Happy Trade
PS. Liviu,
Good work for new site. It looks better.
thanks Charlie. Just want to make sure whether you want a G+ invitation, because I can't see your email address for some unknown reason. :)
I receive your email link and read your analysis and update on your site every day. Thanks.
I found bad news for EUR:
"Traders report selling from a North Asian central bank above 1.4000; a bad sign for EUR/USD… If EUR/USD loses its central bank sponsorship, look out below."
there are dozens banks (including CBs), large funds, institutional traders buying and selling currencies at every single fraction of a pip, literally.
FX volume is so huge that it really doesn't matter if there are rumors that some "unknown" bank in some corner of the world is selling or buying.
In my opinion, taking into consideration such rumors or "reports" in order to have an edge is a big mistake.
Pingback: Dollar Under Pressure Ahead of Bernanke’s Testimony | FX Trading Blog - innerfx.com