Quote of the day: “Every nation ridicules other nations, and all are right.” – Arthur Schopenhauer
EURUSD – 1.3588 @07:35 GMT
Good morning. Resistance at 1.3600/20 where 61% of 1.3750-1.3430 resides is still under pressure at time of writing, so the pair is not changed much since my yesterday evening article. While this resistance zone holds, selling on intra-day weakness seems a good thing to do but a break above this fib resistance, also a downward trendline connecting 3 weekly lower highs, it should be a good reason to buy – targeting 1.3750 and 1.39-1.40. Intra-day charts are bullish as long as the euro holds above 1.3580, therefore the 1.3550-1.3580 zone is where I’ll be looking for selling opportunities if weakness intensifies. According to the Forex Calendar – Ben Bernanke is speaking again today so let’s keep our eyes on metals (hint: silver at record highs again).
Trading strategy: looking to sell around 1.3560 on breakdown, stop at 1.3610 (0.5% risk), 1st objective at 1.3510, 2nd objective at 1.3460. Secondary plan is to buy at 1.3625, stop at 1.3575, objective at 1.3750
Support: 1.3550/80, 1.3500, 1.3430/50, 1.3360 and 1.3300
Resistance: 1.3600/20, 1.3650, 1.3700 and 1.3730/50
Market sentiment: long term – mixed, medium term – bullish, short term – slightly bearish, intraday – bullish
- EURUSD 4hrs chart 2-18-2011