Quote of the day:“Insist on yourself; never imitate… Every great man is unique.” - Ralph Waldo Emerson
Greetings. The euro is still in consolidation mode after last week’s rally but remains bullish on short-term basis as support into the 1.4320-1.4350 range holds. The said support is backed b a more important barrier near 1.4250, so if 1.4320/50 fails, there’s a good chance for the euro to find enough bids into the mid 1.42.
Although the daily chart is slightly bullish, I guess all eyes are on the descending trendline connecting previous lower highs, currently seen around 1.4400. Potential breakout should provide a decent buying signal – at least from the technical perspective – and next target could be 1.46-1.47. On the weekly chart we have one big bull flag suggesting that uptrend will continue and the break out the the flag should occur quite soon – being a matter of days. I for one expect some more EUR gains on short-term basis but the risk on/off regular cycles caused by bad news coming both from Europe and the US are here to stay – meaning that we’ll continue to see large swings in both directions.
Trading strategy: standing aside
Support: 1.4330/50, 1.4250, 1.4200, 1.4150 and 1.4100
Resistance: 1.4420/50, 1.4500 and 1.4600 and 1.4700
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – mixed
EURUSD daily chart 7-25-2011
EURUSD weekly chart 7-25-2011
Have a great day and good luck trading!
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