Quote of the day: “Another flaw in the human character is that everybody wants to build and nobody wants to do maintenance” - Kurt Vonnegut
EURUSD – 1.4482 @06:40 GMT
Good morning. The euro is trading lower across the board as downside pressure is amplifying despite yesterday’s ECB signal that it will raise interest rates next month. One might ask why it declines when it’s quite clear that a rate hike is due in July? Well, the sell-off was mainly caused by lacking clues of interest rates beyond July and if you’re familiar with the market – then you already know that the market “likes” to react different than widely expected, especially because a rate hike was (and still is) priced in. Now that interim support at 1.4550 was broken, I think we’re going to see more weakness and a test of 1.4400 later today. My plan to sell on break of support at 1.4550/60 worked well so far and I’ll be holding the position with a stop around breakeven and an open target, probably looking to close half of it later today if the decline continues, leaving half open over the weekend. Today’s most important event in the economic calendar is a speech by Trichet in Frankfurt.
Trading strategy: holding short at 1.4550/60, with stop at breakeven, target open
Support: 1.4450, 1.4400 and 1.4335/50
Resistance: 1.4500, 1.4550/60, 1.4600 and 1.4650
Market sentiment: long term – mixed, medium term – bullish, short term – mixed, intraday – bearish
- EURUSD 4hrs chart 6-10-2011
have a great day
it will go done but not that much.
I think now is the right time to have our eyes on major support levels like you draw above. I personally just see this as a further preparation for prices to make another high whether it is going to be this month or next month when the ECB release the interest rate hike news.
I thing that it will go down until 1.43. Then the trend will change for sure.
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