EURUSD Reaching Fresh Highs

Quote of the day: “Avoid having your ego so close to your position that when your position falls, your ego goes with it.” – Colin Powell

EURUSD – 1.4615 @07:00 GMT

Good morning. As commodities are reaching new record highs against the dollar, there’s only one way the EURUSD can go. Now that $1.45 has been breached, the pair aims towards 2009′s top side around 1.51. Meanwhile, the USD Index which is negatively correlated to EURUSD is already trading below 2009 lows, so we can look a bit lower at the bottom established in 2008. I for one expect to trade at those levels in the next few months. But speaking of today’s market conditions, there are few important events in the Forex Calendar before entering the Easter prolonged weekend starting tomorrow: one being the German Ifo at 09:00 GMT and the second one being the US Initial Jobless Claims at 13:30 GMT. Buying on pullbacks and breakouts remain the two best things to do for now, in my opinion.

Trading strategy: looking to buy on potential pullback to 1.4570, stop at 1.3510 (0.5% risk), target at 1.4690

Support: 1.4570/00, 1.4530/50, 1 4400 and 1.4300
Resistance: 1.4650, 1.4700/20 and 1.4800
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bullish

EURUSD 4hrs chart 4-21-2011
EURUSD 4hrs chart 4-21-2011
USD Index weekly chart 4-21-2011
USD Index weekly chart 4-21-2011

About abwehra group

The Art&Science of Trading Gold
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