Quote of the day: It’s a zero sum game, somebody wins, somebody loses. Money itself isn’t lost or made, it’s simply transferred from one perception to another. – Gordon Gekko (Michael Douglas)
EURUSD
Trading strategy: standing aside
The dollar recovered some ground yesterday as the euro failed to hold into the 1.40-1.41 region. Upside remains favored for now although price hesitates into the 1.4 region when it manages to break higher and it seems that a solid reason is required to push the euro higher against the dollar. Next round of quantitative easing (QE2), which is widely expected to be announced next week, on November 3, will most likely (continue to) have a negative impact on the U.S. dollar. Although QE2′s effects are already priced in, there’s more downside for the dollar to be explored, once the Fed confirms the sequel: MP2 (Money Printing 2). Speaking of today’s conditions, more range bound price action is on the cards on intra-day basis but short term and medium term bullishness will probably favor further buying on dips, though not much buying on strength / breaks higher. Current exchange rate is 1.3961 @07:08 GMT
Support: 1.3900, 1.3850 and 1.3790/00
Resistance: 1.400, 1.4050, 1.4100 and 1.4150/60
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intra-day – slightly bullish
- EURUSD 4hrs chart 10-26-2010
More trading setups
USDJPY
- USDJPY 4hrs chart 10-26-2010
EURCHF
- EURCHF 4hrs chart 10-26-2010
Gold
- XAUUSD 4hrs chart 10-26-2010
Have a great day!
forgot to say that my yesterday's plan to buy EUR on dip to 1.40 was a bad plan.