Quote of the day: “In ancient times they had no statistics so they had to fall back on lies.” – Stephen Leacock
EURUSD – 1.3591 @07:55
Trading strategy: standing aside
Good morning. Price is little changed since Friday’s pre-NFP levels as the euro recovered after declining to 1.3550. However, it’s a bit too early to look for signs of a more serious recovery from these levels so keep an eye on support at 1.3530/50 and resistance at 1.3750. yesterday I posted my views on euro, dollar and some other pairs – so you may want to check my weekend thoughts article in case you missed it. Speaking of current intraday conditions – the euro is quite vulnerable right now and it’s probably best to look for selling opportunities either on a potential rally towards 1.3700 or on a break lower – below 1.3530/50.
Support: 1.3530/50, 1.3500 and 1.3430/50
Resistance: 1.3650, 1.3700, 1.3730, 1.3800 and 1.3860
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bearish
- EURUSD 4hrs chart 2-7-2011
I wish you a great week. I’ll be back later today
…yes – more pressure on the Euro – but going the other way is Cable (atm) with the the product of this showing up nicely in the Royal Cross.
Might give credence to your bearish EUR/GBP from last week.
right, cable holds well and gained almost 10 big figures in 1 month. It definitely doesn't look "good to sell" now and while it goes up, especially on the weekly charts if it breaks above the double top formation (current levels + November's top), EURUSD will follow – probably lagging behind and diverging from time to time (when more Euro-zone debt news come out) but still… it will follow. Which will mean that the dollar index will break below long-term trendline
Yes, DXY looks to be heading down to l/t support. Most are expecting some sort of bounce around there but the last one in Nov wasn't particularly robust. We'll 'know' soon enough. On the whole, tops for EUR and GBP would seem to be the favourite scenarios – but you never know in this game.
Liviu, I see no chance that EURUSD will reach 1.375 today. I see strong resistance at 1.3640 then at 1.3685. I would suggest a buy on break above 1.3645 with a T1=1.3685 (40 pips profit). What clues do you get from the weekly charts? I see that the pair could go higher.
never say never :)
buying on break is also a decent option. I still have some long EURUSD positions on medium term so I look to grab some pips selling it and will add to the longs if it breaks above 1.38+
Regarding the weekly chart – check my weekend article where I highlighted the weekly reversal candles
Anyway, the dollar index looks ugly (bearish)