Quote of the day: Sometimes it is better to lose and do the right thing than to win and do the wrong thing. – Tony Blair
EURUSD
Trading strategy: standing aside
Euro’s sell-off continues amid European debt concerns which are worsening risk appetite in the market. The pair failed to hold recent gains above the $1.400 mark – trading to as low as 1.3835 earlier today and current decline is highly visible in other pairs such as EURCHF, EURJPY and EURAUD which was a one-way road since late 2008 – currently retesting record lows. However, I don’t mention ‘a stronger dollar’ when comparing the two currencies but rather a weaker euro. Current market condition, especially in EURUSD, is not about which one is stronger but which is weaker – just take a look at Gold which breached 1400 and trades comfortably around 1415, on its way to 1500, or Silver – currently around 28 / towards 30 – as a result of the QE2 Ponzi scheme stimulus. Looking at the daily charts – it seems that the pair will test last month’s bottom around 1.3700. Although the medium term studies are still bullish – the short-term sentiment is currently bearish, therefore current downward action is still a correction. Potential signs of uptrend continuation should emerge on break above 1.4000/50 – until then, selling into strength or break lower is probably the best thing to do. Current exchange rate is 1.3867 @06:58
Support: 1.3835/50, 1.3800 and 1.3700
Resistance: 1.3900, 1.400, 1.4050 and 1.4150
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intra-day – bearish
- EURUSD 4hrs chart 11-9-2010
More trading setups
GBPUSD
- GBPUSD 4hrs chart 11-9-2010
EURCHF
- EURCHF 4hrs chart 11-9-2010
EURCAD
- EURCAD 4hrs chart 11-9-2010
EURAUD
- EURAUD daily chart 11-9-2010
Gold
- XAUUSD 4hrs chart 11-9-2010
Have a nice day
