Quote of the day: “Fiction reveals truths that reality obscures.” – Jessamyn West
EURUSD
Trading strategy: looking to sell on pullback to 1.3280, stop at 1.3340, 1st objective at 1.3230, 2nd objective at 1.3100
Good morning. The euro continues to trade lower, threatening the $1.3100 yesterday. Former support around 1.3180 became resistance held yesterday, before the euro fell to its lowest level in two weeks. Current euro’s depreciation comes as a result of renewed concern that the euro region’s crisis will spread. On a medium term basis – the recovery cycle is still intact and, technically, the pair is on uptrend – though it looks quite vulnerable now, while previous lows reached in November are challenged. As long as 1.33-1.3450 caps the upside, within the coming weeks, things will probably continue to deteriorate. I am looking at the rising trendline I mentioned yesterday, which, along with 1.300 into the same area, might provide a decent support – or an entry point to join the bear train, on break down. On the upper side, a break above 1.3180 should suggest further upside action, recovering towards 1.3300. Current exchange rate is 1.3172 @05:55 GMT
Support: 1.3100/25, 1.2980/00 and 1.2900
Resistance: 1.3180/00, 1.3300 and 1.3360
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – slightly bullish
- EURUSD daily chart 12-21-2010
- EURUSD 4hrs chart 12-21-2010
Have a nice day and good luck trading
