Quote of the day: “You must first have a lot of patience to learn to have patience.” – Stanislaw J. Lec
EURUSD – 1.4177 @06:45 GMT
Good morning. The pair trades in a narrow range ahead of ECB’s rate decision this Thursday but holds gains below recent top at 1.4270 and still above 1.4070-1.4130 where first near term support is seen. Intraday charts are bearish as price retreats below yesterday’s bottom at 1.4190. I hurried up yesterday, expecting a break above current range – well, it seems there’s more consolidation or corrective action to be seen before possibly resuming uptrend. Friday’s continuation candle suggests more upside and current pullback should not extend below Friday’s lower region for the short-term sentiment to remain bullish. In case of a daily close below the 1.4050-1.4100 region, the signs will be quite clear that a temporary top has been formed and would be a good idea to look for selling opportunities – targeting former resistance zones such as 1.3800. Today’s key event in the economic calendar is the FOMC Meeting Minutes at 19:00 GMT.
Trading strategy: standing aside
Support: 1.4130/50, 1.4100, 1.4070, 1.4000/30 and 1.3930/50
Resistance: 1.4220/40, 1.4260/80, 1.4300 and 1.4350
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bearish
- EURUSD 4hrs chart 4-5-2011