eurusd trades lower; Portugal PM Socrates resigns

Quote of the day: “A government that robs Peter to pay Paul can always depend on the support of Paul.” – George Bernard Shaw

EURUSD – 1.4058 @07:43 GMT

Good morning. The euro continues to trade lower as Portuguese Prime Minister Jose Socrates resigns after parliament rejected austerity budget. Support zone into the 1.4000-1.4050 region is quite critical and potential daily breakdown below the said range would be a strong bearish signal. Hourly studies remain bearish and intra-day resistance at 1.4130/50 seems a decent barrier if you look for selling opportunities on rallies. I for one am more inclined to follow the medium-term trend and look for buying opportunities if I’ll notice a sign suggesting that the correction is over and uptrend resumes.

Trading strategy: looking to buy at 1.4000, stop at 1.3930 (0.5% risk), target open.

Support: 1.4000/30, 1.3930/50, 1.3900 and 1.3850
Resistance: 1.4100, 1.4130/50, 1.4200, 1.4260/80, 1.4300 and 1.4400
Market sentiment: long term – mixed, medium term – bullish, short term – mixed, intraday – bearish

EURUSD 4hrs chart 3-24-2011
EURUSD 4hrs chart 3-24-2011

About abwehra group

The Art&Science of Trading Gold
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