Quote of the day: “Where there is much light, the shadow is deep.” - Johann Wolfgang von Goethe
EURUSD – 1.4844 @07:13 GMT
Good morning. Surprisingly (or not), EURUSD is still trading into the range which holds for 5 days now. Both lower and upper range limits, at 1.4770 and 1.4870 respectively, have provided strong barriers on each day. Tomorrow’s ECB Rate Decision and Press Conference are some of the most important events in the Economic Calendar this week, and would probably be bullish for the EUR as the ECB is strongly signaling that additional rate increases are likely this year, but at a moderate pace. Today’s important events are the ADP Nonfarm Employment Change at 13:15 GMT and Fed’s Fisher speech at 21:00 GMT. Looking at current intraday EURUSD chart (hourly), we can see that the EUR is getting a lift after retesting support at 1.4770 earlier today. One thing is certain: it will exit the range soon, as there are too many positions built on both sides with stops out of the range, therefore exiting one way or another would likely trigger a cascade effect of stop-loss orders, giving it a greater chance of a sustained breakout. Short-term sentiment remains bullish as EUR is still holding gains, not being affected by the large correction in Silver and Gold.
Trading strategy: Primary plan is to buy around 1.49 on potential 4-hrs bar close above 1.4870, initial stop at 1.4830 (0.5% risk), target open. Another plan is to look for selling opportunities after a 4-hrs bar closing below 1.4770, with an initial stop at 1.4830 (0.5% risk), target at 1.4650
Support: 1.4770/00, 1.4730/50, 1.4700 and 1.4600/30
Resistance: 1.4850, 1.4880/00, 1.4950 and 1.500
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – neutral
- EURUSD hourly chart 5-4-2011
- EURUSD daily chart 5-4-2011
Have a great day
there is one thing i dont "understand": why isnt there a decent healthy correction to buy more at lower levels? no juice when the lemon is already squeezed…
or traders are affraid of panic moves?
the decent healthy correction is there *pointing finger to silver* ;)
Looks like rumours of the Dollahs "recovery" are wonders of the two-day variety.
Potential breakouts in Risk all over the place, (short squeeeeze for cable??)
Ain't we got fun..
hmm I'm watching Silver, waiting for the recovery to begin.
I don't think cable will get over 1.66 today, the recovery looks corrective
it was a little too "healthy " :)
daily at 50 sma..
Hello. Did you get some losses at 4830? I still hold my long possition.. I guess the breakout was failed :(
yeah, exited the long earlier, around 1.485
After falling back below 1.4870 it was clear enough that the breakout was fake. I don't like this range
It's like a bull's failure
Is it me or is the market being quiet random these days…. or may be I just didn't do my homework.
definitely… but, a few more days and it will look normal when we'll scroll charts back ^_^
It looks like there's a counter-trend pin on the daily chart. Any comments?
yeah, but it is already up to retest resistance and we have the ECB and Bernanke's speech today.
Anyway, even if it breaks above this range… there's 1.5 a few pips above and that will probably be a good reversal point
and hell broke loose lol
1.4585, over 300 pips decline in one day.
Silver below 50% of last upleg from 26.30 to 49.75
amazing
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