Quote of the day: “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” – Winston Churchill
EURUSD – 1.3825 @07:55 GMT
Good morning, everyone. Euro’s failed attempt to hold recent gains above the trendline connecting the higher lows of last 3 weeks provides a sound reason to sell, targeting the next downside objective at 1.3750/80. The Euro zone leaders are meeting tomorrow in Brussels to address plans for a permanent debt rescue system, so it’s likely that the EUR will stay under pressure ahead of tomorrow’s event. Now that 1.3850 has been breached to the downside, sellers will probably look at the 1.3850-1.3890 zone for new selling opportunities, if price bounce back. One of today’s most important economic events is the US Initial Jobless Claims at 13:30 GMT.
Trading strategy: standing aside
Support: 1.3800, 1.3750/80 and 1.3700
Resistance: 1.3950, 1.400/30, 1.4050 and 1.4100
Market sentiment: long term – mixed, medium term – bullish, short term – slightly bearish, intraday – bearish
- EURUSD 4hrs chart 3-10-2011