Good morning. It’s the start of a new week and the main question is whether a correction is due in the coming days. If yes, then first support levels where some would look for new buying opportunities come at 1.4350/80 backed by 1.4250 and 1.4170. Below 1.4170, short-term sentiment should turn slightly negative but judging by current conditions it seems more likely that price will continue to pressure the upside. Next upside barrier is seen at 1.4500, followed by 1.4600. At this stage I prefer to buy dips and will wait for a potential pullback towards 1.4350. Some of the important events in the FX Calendar this week are the German Zew, US Trade Balance, US Retail Sales, US Initial Jobless Claims and CPI.
Trading strategy: looking to buy on potential pullback to 1.4350, initial stop at 1.4290 (0.5% risk), target open
Support: 1.4400, 1.4350, 1.4250, 1.4130/50, 1.4100, 1.4070 and 1.4000/30
Resistance: 1.4500, 1.4600 and 1.4700
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bullish
- EURUSD 4hrs chart 4-11-2011