EURUSD Slightly Higher Ahead of FOMC Minutes

Quote of the day: “Whenever you find that you are on the side of the majority, it is time to reform.” – Mark Twain

EURUSD – 1.3545 @07:58 GMT

Trading strategy: standing aside

Good morning. I exited my short EURUSD position for a loss as the pair returned to 1.3550/60 where it is testing resistance at time of writing. The dollar is under minor pressure ahead of today’s FOMC Meeting Minutes which is the main event in the Forex Calendar in the upcoming trading sessions. On near-term basis I still believe there’s more selling to be seen in EURUSD as the daily charts are showing weakness signs and we have lower highs and lower lows forming since the beginning of February, also the 3 reversal candles on the weekly charts suggesting that a top is formed around 1.3750 – so, technically – looking for selling opportunities is probably the best bet for now. Frankly, I prefer to be on dollar bear side but right now – the EURUSD doesn’t seem the best pair to do so. Above 1.3700/50 resistance zone I’ll consider some buying scenarios.

Support: 1.3500, 1.3430/50, 1.3360 and 1.3300
Resistance: 1.3550/60, 1.3580/00, 1.3650, 1.3700 and 1.3730/50
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bullish

EURUSD daily chart 2-16-2011
EURUSD daily chart 2-16-2011
EURUSD 4hrs chart 2-16-2011
EURUSD 4hrs chart 2-16-2011
EURUSD weekly chart 2-16-2011
EURUSD weekly chart 2-16-2011

Have a great day and good luck trading!

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