eurusd trades higher; 1.4280 under pressure

Quote of the day:“You cannot teach a man anything. you can only help him to find it for himself” – Galileo Galilei

EURUSD – 1.4235 @07:53 GMT

Good morning. Trading was quiet yesterday but the euro holds gains and climbed higher against the US dollar, flirting with 1.4250 at time of writing, not far below November’s top at 1.4280 where first resistance level resides. ECB’s Trichet said yesterday that the ECB’s intention to raise interest rates as soon as next month has not changed, despite the impact of Japan’s disaster. As the market is pricing in ECB’s rate hike in April, I don’t see any good reason to call a top and look for a reversal around these levels. Therefore, my plan is to look for buying opportunities on strength and minor pullbacks – and a potential violation of the double top formation at 1.4280 will be yet another breakout opportunity – this time more important than last week’s breach of 1.40.

Trading strategy: looking to buy on potential pullback to 1.4170, stop at 1.4110 (0.5% risk), target open

Support: 1.4150, 1.4085/00, 1.4000/30, 1.3930/50, 1.3900 and 1.3850
Resistance: 1.4260/80, 1.4300 and 1.4400
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bullish

EURUSD daily chart 3-22-2011
EURUSD daily chart 3-22-2011
EURUSD weekly chart 3-22-2011
EURUSD weekly chart 3-22-2011

About abwehra group

The Art&Science of Trading Gold
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