Quote of the day: If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand. – Milton Friedman
EURUSD
Trading strategy: long at 1.3960, stop at 1.3880(0.5% risk), 1st objective at 1.4010, 2nd objective at 1.4100
We are one day closer to the G20 summit starting tomorrow in Gyeongju, South Korea and the $1.400 level was brought back into attention yesterday as the dollar failed to hold Tuesday’s gains, reversing at 1.3700. Now that the upside is again favored on a short-term basis, looking to buy on a break higher, above 1.400, might be a viable scenario. My yesterday’s intra-day trade idea to sell on strength at 1.3870 obviously wasn’t the best things to do, but not the worst thing either – as the pullback from 1.3870 almost reached the 1st objective of 50 points. Well, that’s a good example of what to expect when going against the well-established trend, trying to pick tops: not worth choosing large objectives, because in most cases the trade will get you into a “wait and hope“, definitely not outsmarting the market. Today’s conditions look rather bullish, temporary support being formed around the 1.3900 mark, backed by 1.3850 and 1.3790/00 lower. As long as the pair doesn’t resume Tuesday’s decline by breaking below retracing values within the 1.3800-1.3850 range, upside should remain favored – first objective being 1.400. Potential break above negates last lower highs formation – providing yet another uptrend confirmation. The main event in today’s economic calendar is the Initial jobless claims data release in the U.S. Current exchange rate is 1.3927 @06:05 GMT
Support: 1.3900, 1.3850, 1.3790/00 and 1.3600/30
Resistance: 1.3950/75, 1.400, 1.4100 and 1.4150/60
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intra-day – slightly bearish
- EURUSD hourly chart 10-21-2010
More trading setups
GBPUSD
- GBPUSD 4hrs chart 10-21-2010
EURCHF
- EURCHF 4hrs chart 10-21-2010
USDJPY
- USDJPY hourly chart 10-21-2010
Gold
- Gold 4hrs chart 10-21-2010
Have a good day!
