EURUSD Trading in Narrow Range Below Recent Top

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
EURUSD 4hrs chart 4-5-2011

About abwehra group

The Art&Science of Trading Gold
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