Quote of the day: “If you‘re going through hell, keep going.” – Winston Churchill
EURUSD
Trading strategy: looking to buy a small size on break above 1.3280 / around 1.3300, stop at 1.3240, 1st objective at 1.3350, 2nd objective at 1.3440
Euro’s recovery was capped at 1.3310/20 and was sold-off after Fitch downgraded Ireland to BBB+. Though the bull flag formation I mentioned yesterday is still intact and currently the upper limit is being tested. Should it eventually breach, this week’s clear bearish trend will be negated and 1.3440 could be next target. So if you look to ride the euro roller coaster while it may recover some ground, you better wait for a breakout confirmation then hold on tight and be ready for a change of direction at any time (instructions – here). On the lower side, around 1.3200, we can see some long tail candles on both intra-day and daily charts, though the dailies show more hesitation on both sides in the last 4 days – and this is why I say that extra-caution is needed when playing a breakout against 1) a short-term trend and 2) sideways intra-day conditions. Today’s key event in the economic calendar is the US Trade Balance. Current exchange rate is 1.3275 @07:34 GMT
Support: 1.3200, 1.3150/80, 1.3100/25 and 1.2980/00
Resistance: 1.3270/00, 1.3330, 1.3400, 1.3440 and 1.3500
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bullish
- EURUSD 4hrs forex chart 12-10-2010
- EURUSD daily forex chart 12-10-2010
More trading setups
Gold
- XAUUSD 4hrs chart 12-10-2010
CHFJPY
- CHFJPY daily forex chart 12-10-2010
GBPUSD
- GBPUSD 4hrs forex chart 12-10-2010
Have a great day and good luck trading
