Quote of the day: “Seize the moment of excited curiosity on any subject to solve your doubts; for if you let it pass, the desire may never return, and you may remain in ignorance.” - William Wirt
EURUSD – 1.4314 @06:48 GMT
Good morning. Euro’s recovery continues but doesn’t impress so far. On the hourly chart we can see that last 4 pullbacks are all similar in size as price bounced off support trendline connecting the higher lows since bottoming near 1.4050 and this makes the trendline quite stable for now, so if you are looking to buy dips – 1.4250/60 seems a good level to do so. Daily charts are still bearish after the recent sell-off and a test of key resistance levels at 1.44 and 1.45 is in the cards. I think it’s worth keeping an eye on 1.4400 today as the pair seems ready to climb higher and test it but I doubt it will break it.
Trading strategy: looking to sell on potential rally to 1.4400, initial stop at 1.4460 (0.5% risk), target open
Support: 1.4300, 1.4230/50, 1.4200/30, 1.4130/50, 1.4050, 1.4000 and 1.3900
Resistance: 1.4350/70, 1.4400 and 1.4500
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bullish
- EURUSD hourly chart 5-20-2011
- EURUSD daily chart 5-20-2011
have a great day!
