Thursday 03.27.2008

EURUSD

Trading strategy: Long in the 1.5753 area, stop at 1.5713, objectives at 1.5853. Extended objectives may aim to 1.5950 if 1.5860 breaks.

The Euro extended its gains versus the dollar on yesterday and reached 1.5860 by the end of the US trading session. The 1.5905 record high is under heavy pressure now that the Euro is not far away and so is the 1.6 psychological barrier which will become the next upside objective if 1.5905 breaks. The Euro is currently retracing below 1.5800 but may resume the uptrend once confirming a stable support in the 1.57 zone. Sentiment is bearish on the short-term studies due to the 90 points pullback but the retracement is normal since it follows a 270 points move. Support is currently seen at 1.5750 backed by 1.5720, 1.5660 and 1.5585. Resistance starts at 1.5810 followed by 1.5860, 1.5880 and the record high at 1.5905. Higher resistance is formed by the 1.6 level. Upside remains favored with focus on the 1.5905 mark once the intra-day uptrend resumes. Current exchange rate is 1.5783 @07:16 GMT

Support levels: 1.5750, 1.5720, 1.5660, 1.5585
Resistance levels: 1.5810, 1.5860, 1.5880, 1.5905 and 1.6000.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish

Yesterday trading strategy: Long in the 1.5560 area, stop at 1.5525, objective at 1.5615. Extended objectives may aim to 1.5660 if 1.5615 breaks : 0 (entry not reached)

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