EURUSD showing minor signs of vigor

Quote of the day: “Where facts are few, experts are many.” – Donald R. Gannon

EURUSD

Trading strategy: looking to sell a small size at 1.3070, stop at 1.3130 (0.5% risk), 1st objective at 1.3010, 2nd objective at 1.2950

Good morning. The euro recovered some ground yesterday and continued today, following EURJPY which strengthened a bit after the Japanese Finance Minister said it was appropriate for Japan to buy European bonds to support Ireland. The EURUSD currently trades around 1.2950, far from last week’s top side at $1.34, but shows signs of vigor on the 4-hrs charts. Momentum might pick up on potential break above 1.300, though downside pressure remains high due to bond auctions this week. Resistance starts at 1.300, followed by 1.3070/00 and 1.3150 near term barriers. On the South side – below yesterday’s bottom at 1.2870, there’s important support at 1.2800 – which is the 61.8% of last year’s euro recovery from 1.1875 to 1.4280. Current exchange rate is 1.2950 @06:40 GMT

Support: 1.2870, 1.2800, 1.2700 and 1.2600
Resistance: 1.2980/00, 1.3100, 1.3150 and 1.3200
Market sentiment: long term – mixed, medium term – bearish, short term – bearish, intraday – slightly bullish

Have a great day and good luck trading

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