EURUSD Pulling Back From Multi-Month High; Uptrend Intact

Quote of the day:“Words without actions are the assassins of idealism.” – Herbert Hoover

EURUSD – 1.4385 @06:55 GMT

Good morning all. EURUSD pulled back from its multi-month high at $1.4485 following EURJPY and EURCHF as both pairs have lost ground after Japan raised the severity rating of the accident at Fukushima. The euro is not the only currency losing ground across the board yesterday and during today’s Asian trading session – other retreating from record high territory is the AUDUSD, following AUDJPY pulling back after an impressive bull run. Euro’s near-term sentiment remains bullish and, as mentioned yesterday, I believe there’s room for a correction, not affecting the uptrend. First support region comes around 1.4350, formed by last week’s top along with the 62%-50% fib ratio of last short-term up leg from 1.4240 to 1.4485. If the said support doesn’t hold, then next downside barrier would be 1.4230/50. According to yesterday’s poll, most readers are expecting the EUR to climb further against the dollar towards $1.5. Let’s see if this correction will be short-lived, so keep an eye on next support levels.

Trading strategy: looking to buy at 1.4330, initial stop at 1.4270 (0.5% risk), target open

Support: 1.4350, 1.4250, 1.4130/50, 1.4100, 1.4070 and 1.4000/30
Resistance: 1.4400, 1.4450/85, 1.4500, 1.4600 and 1.4700
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bearish

EURUSD 4hrs chart 4-12-2011
EURUSD 4hrs chart 4-12-2011

About abwehra group

The Art&Science of Trading Gold
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