Two-week support at 1.3180 breached

Quote of the day: “In seed time learn, in harvest teach, in winter enjoy.” – William Blake

Check my weekend article, in case you missed it: 10 Trading Lessons You Can Learn From Albert Einstein

EURUSD

Trading strategy: looking to sell a small size around 1.3250, stop at 1.3310, 1st objective at 1.3200, 2nd objective at 1.3100

Good morning. There are only a few days left until Christmas, therefore the market will probably remain calm during the next trading sessions. The 2-day meeting in Brussels ended on Friday, though the dollar gained versus the euro as the EU decision disappoints – the plan being in line with traders’ lowest expectations. The euro didn’t manage to hold into its gains above 1.3300 and collapsed – testing bids below the two-week bottom providing support, around 1.3180. Next support is around an upward trendline, connecting previous higher lows (daily charts), followed by December’s open at 1.2980/00 – and such major round numbers, like 1.300, use to play an important role – as the market either bounce off the round number support, providing a decent buying opportunity, or break down violently, slicing through all the stop loss orders pending below a major psychological figure. My Friday plan to buy a small size on pullback to 1.3250 didn’t work out, and it was definitely a bad idea to try and catch the euro, because the drop was not a ‘natural’ pullback but a real decline. Current exchange rate is 1.3156 @05:50 GMT

Support: 1.3100/25, 1.2980/00 and 1.2900
Resistance: 1.3180/00, 1.3300 and 1.3360
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish

Have a nice day and good luck trading

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Post tags: EURUSD