Quote of the day: “The best way to destroy the capitalist system is to debauch the currency.” – Vladimir Lenin
EURUSD – 1.4282 @07:05 GMT
We are one day closer to ECB’s rate decision and the euro is climbing higher as the dollar is losing ground across the board except USDJPY. Speaking of dollar’s weakness – Gold is exploring uncharted territories after printing a record high yesterday and Silver is about to reach the 40 handle soon. Euro’s ongoing breakout of resistance around 1.4260 seems valid and is also supported by yesterday’s continuation candle suggesting more upside – similar situation to Friday’s recovery after testing support levels not far below last month’s top side.
As mentioned in several of my last articles, I remain bullish on EURUSD and don’t see any reason (technically) to sell at these levels. As most of you already know, I usually look to get into trades with larger targets, over 100 pips – and this potential break above 1.4260/80 would negate a double top formation (chart below), providing an initial upside target around $1.45. Today’s economic calendar is lighter, therefore trading will probably be quiet ahead of tomorrow’s ECB rate decision.
Trading strategy: looking to buy on potential pullback to 1.4250, initial stop at 1.4190 (0.5% risk), target open.
Support: 1.4220/50, 1.4130/50, 1.4100, 1.4070, 1.4000/30 and 1.3930/50
Resistance: 1.4280/00, 1.4350 and 1.4400
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bullish
- EURUSD 4hrs chart 4-6-2011
- EURUSD daily chart 4-6-2011
- EURUSD weekly chart 4-6-2011