EURUSD Looking Quite Vulnerable

Quote of the day: “What worries you masters you.” - Haddon W. Robinson

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EURUSD – 1.4234 @06:52 GMT

Good morning. The euro fell across the board on sovereign debt concerns, breaking below interim support at 1.4350 to test a more notable support into the 1.4200-1.4250 region. S&P’s downgrade of U.S. credit outlook to negative has sent the risk sensitive currency pairs into freefall – EURUSD following EURJPY which has pulled back from 120 to mid 116, not far above 115 where key support / former resistance resides. Both daily and weekly charts of EURUSD are showing weakness signs and near term bias remains to the downside as long as we don’t see a convincing break over former support at 1.4350, eventually. Meanwhile, I think it’s worth to consider selling opportunities both on pullbacks to the upside and a break below recent low at 1.4160.

Trading strategy: Looking to sell on potential pullback to 1.4300, initial stop at 1.4360 (0.5% risk), target open

Support: 1.4200, 1.4150, and 1.4100/30
Resistance: 1.4300, 1.4350 and 1.4400
Market sentiment: long term – mixed, medium term – bullish, short term – slightly bearish, intraday – bearish

have a good day and good luck trading

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Post tags: Euro-zone crisis, EURUSD, rating agencies