Quote of the day: “Excess volatility is an enemy from the standpoint of the stability and prosperity of the global economy.” – Jean-Claude Trichet
EURUSD – 1.3336 @06:45 GMT
Trading strategy: looking to buy on potential pullback to 1.3250, stop at 1.3190 (0.5% risk), 1st objective at 1.3280, 2nd objective at 1.3330
Good morning. The euro rallied yesterday as Spain sold 3 billion euros of 4-year bonds, meeting its maximum target. The hawkish statements from the ECB also helped the euro to recover, bringing last month’s top side around 1.3430 back to our attention. Short-term sentiment turned positive after yesterday’s 300 points rally and it looks like there’s more upside to come – as the euro is conserving gains above the 1.3300 handle. In case of a pullback to the downside, first important intra-day support stands at 1.3230, backed by 1.3200. Today’s notable events in the forex calendar are the US CPI and Retail Sales releases at 13:30 GMT. Now that the euro bounced off recent lows and momentum studies turning positive – I’m inclined to look for more upside action – testing 1.3430/50 in the next sessions.
Support: 1.3230/50, 1.3200 and 1.3150
Resistance: 1.3400, 1.3430/50 and 1.3500
Market sentiment: long term – mixed, medium term – bearish, short term – bullish, intraday – bullish
- EURUSD daily chart 1-14-2011
- EURUSD hourly chart 1-14-2011
Have a great day and good luck trading
