Quote of the day: “A government that robs Peter to pay Paul can always depend on the support of Paul.” - George Bernard Shaw
EURUSD - 1.4058 @07:43 GMT
Good morning. The euro continues to trade lower as Portuguese Prime Minister Jose Socrates resigns after parliament rejected austerity budget. Support zone into the 1.4000-1.4050 region is quite critical and potential daily breakdown below the said range would be a strong bearish signal. Hourly studies remain bearish and intra-day resistance at 1.4130/50 seems a decent barrier if you look for selling opportunities on rallies. I for one am more inclined to follow the medium-term trend and look for buying opportunities if I’ll notice a sign suggesting that the correction is over and uptrend resumes.
Trading strategy: looking to buy at 1.4000, stop at 1.3930 (0.5% risk), target open.
Support: 1.4000/30, 1.3930/50, 1.3900 and 1.3850
Resistance: 1.4100, 1.4130/50, 1.4200, 1.4260/80, 1.4300 and 1.4400
Market sentiment: long term – mixed, medium term – bullish, short term – mixed, intraday – bearish
- EURUSD 4hrs chart 3-24-2011
Have a good day!
It does seem to be holding up quite sell considering Portugal will have no government today. However as Belgium has proven, no government might be the best government.
"no government might be the best government" – true that!
Fitch downgraded Portugal and look who's back through the roof! LOL
Trading has never been funnier thank to the rating muppets.