Dollar Under Pressure Before Fed

Quote of the day: “There is no harm in being sometimes wrong – especially if one is promptly found out.” – John Maynard Keynes

EURUSD – 1.4673 @07:18 GMT

Hello. I hope you had a nice Easter weekend. The Economic Calendar is quite busy in the coming days and today’s Fed’s rate decision and statement is one of those events everyone is waiting for. The dollar continues to lose ground across the board as the EUR was trading into the 1.47 region earlier today. However, trading will probably be quiet until later today. The daily charts remain bullish and we now have support around 1.4520 which was a stable resistance level in the first half of April, before resuming uptrend after bouncing off lower support at 1.42. In case of a pullback from current levels, the same 1.4520/50 is where to look for new buying opportunities. Looking higher, above 1.47 there’s no important resistance level up to 1.50 which is both a psychological barrier and the top side of 2009 (best seen on the weekly charts how the euro faced selling pressure when reaching fresh highs). If you are more concerned about hourly charts, then it’s a good idea to keep an eye on first intraday support at 1.4600/30 formed by previous tops and the median retrace value of yesterday’s rally from 1.4490 to 1.4710 (see chart below). Personally, I prefer to wait the Fed statement before considering any trades; but judging by how charts look like at this moment, I’m more inclined to look for buying opportunities either on a breakout above 1.47 or pullback to 1.46 or lower, to 1.4520/50, considering selling on the break of support at 1.4520.

Trading strategy: standing aside

Support: 1.4600/30, 1.4570, 1.4520/50, 1 4400 and 1.4300
Resistance: 1.4700/20, 1.4800 1.4900 and 1.500
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bullish

EURUSD weekly chart 4-27-2011
EURUSD weekly chart 4-27-2011
EURUSD daily chart 4-27-2011
EURUSD daily chart 4-27-2011
EURUSD hourly chart 4-27-2011
EURUSD hourly chart 4-27-2011

About abwehra group

The Art&Science of Trading Gold
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