Quote of the day:“Advice is what we ask for when we already know the answer but wish we didn’t.” - Erica Jong
EURUSD – 1.4384 @07:45 GMT
Morning. Euro is pulling back, retesting 1.4400 at time of writing as the overnight was capped by 1.4465. The sell-off is fuelled by worries over Portugal, which has been downgraded by Moody’s to BA2, or junk. I entered a small long position on yesterday’s test of 1.4400 as planned, but closed it already for minimal gain because I didn’t like how the charts looked like. I think it’s best to look for selling opportunities now, but keeping in mind that ECB’s rate hike is just around the corner and it could limit losses. Anyway, it’s always better to follow the market instead of going against it hoping that some big thing (i.e.: a central bank) will do something to help a counter-trend position.
Trading strategy: looking to sell at 1.4430, initial stop at 1.4490 (0.5% risk), target open
Support: 1.4340, 1.4300/20 and 1.4280 and 1.4200
Resistance: 1.4430/65, 1.4500, 1.4550/75, 1.4600 and 1.4700
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bearish
- EURUSD 4hrs chart 7-6-2011
- EURUSD daily chart 7-6-2011
have a great day!
