eurusd pulling fack from 1.40 amid risk aversion

Quote of the day: “The only way not to think about money is to have a great deal of it.” – Edith Wharton

EURUSD – 1.3913 @07:48 GMT

The markets are nervous and Nikkei closes down 10% on worries about Japan’s nuclear crisis. The euro fell to as low as $1.3892 from $1.40 following EUR/JPY, but also following metals and other USD pairs as the dollar gained in overnight trading. Today’s most important economic event is the US Interest Rate Decision and the FOMC Statement at 19:15 GMT. I took a loss on my yesterday’s long at 1.3965 as price failed to break above $1.40 and I prefer to stand aside for now, as markets turbulence is likely to continue and unexpected random spikes are not to my liking. The daily charts remain bullish but if you look to buy dips – high caution is advised, as this is not the common stable uptrend supported by sound fundamentals, when buying at whatever level would be the best thing to do.

Trading strategy: standing aside

Support:  1.3900, 1.3850, 1.3750/80, 1.3700 and 1.3600
Resistance: 1.3950/60,  1.400/30 and 1.4100
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bearish

EURUSD 4hrs chart 3-15-2011
EURUSD 4hrs chart 3-15-2011
EURUSD daily chart 3-15-2011
EURUSD daily chart 3-15-2011

About abwehra group

The Art&Science of Trading Gold
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