Quote of the day:“The world tolerates conceit from those who are successful, but not from anybody else.” ~ John Blake
Good morning. The ugly gets uglier for the euro as it just reached a 10-year low against the Japanese yen at 100.75 and extended its decline against the dollar to a fresh multi-month low at 1.3165 before pulling back to intraday highs around 1.3220 while writing this. Short-term resistance starts around this week’s opening level at 1.3350 and is followed by 1.3430/50 and 1.3530/50 – as seen below:
EURUSD
Looks very bearish as long as it trades below 1.3350. However, it would remain bearish even in case of a rally to 1.3530, so don’t expect any miracles: rallies, breakdowns = new selling opportunities.
Euro Vs US Dollar Chart 4hrs 10-4-2011
EURJPY
102.00/50 is where to expect the sellers to re-enter the game
Euro Vs Japanese Yen Chart 4hrs 10-4-2011
AUDNZD
The short setup signaled by the reversal pin bar, as noted in my post yesterday, looks good so far. I think there’s more downside to be seen, retesting recent bottom support.
Australian Dollar Vs New Zealand Dollar Chart Daily 10-4-2011
EURGBP
.8635 was indeed a good level to join the bears on yesterday’s short-lived pullback, as I wrote in my previous report. Now .8600 is where to look for new opportunities.
Euro vs British Pound Chart 4hrs 10-4-2011
EURCAD
This doesn’t look like the common retracement so I think it’s worth to consider new selling opportunities either on a failed test of 1.3930/50 or on a break below recent bottom at 1.3850
Euro Vs Canadian Dollar Chart 4hrs 10-4-2011
Have a great day and good luck trading!
Hi Liviu,
EURUSD doesn't give a short opportunity and the pair keeps falling. If you don't hold the open position, what would you do, ride a running horse or keep waiting for the retracement?
Thanks
Charlie
hi Charlie
when the downtrend is so strong and the bad news keep coming, it's unlikely to see a decent retracement so it's just fine to sell at any levels (not using some 20-30 pip stops, of course)
The smaller time frame charts are where to look for selling levels in strong downtrends, while chances for a retracement to last few days are slim
Breakdowns are working fine on hourly chart since breaching 1.35
Thanks mate. Do you use any real time chat tool like Skype or Window messenger?
yeah, skype liviu.fx but I don't use it much, too busy these days with other stuff such as my 3-weeks old daughter
cheers
Articles like yours on Forex trading really help. Thanks for your valuable information on the Euro.
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