Good morning and Happy Europe Day! In case you’ve missed the last posts from other categories, you may want to check them now: Interview With Steve From NoBrainerTrades.com and How to Better Use the Internet for Trading and Personal Purposes. Alright, now let’s take a look at EURUSD which is still under pressure after last week’s large sell-off. Support into the 1.45 zone failed to hold, sending EUR to as low as 1.4315 after the NFP release. The sell-off has been especially fuelled by an article in German news magazine Der Spiegel, reporting that Greece is considering withdrawing from the euro and returning to its former currency. Current support around 1.4300 looks fragile and the euro has to break above 1.45-146 once again, to regain upside momentum. Looking on the daily charts, technically the uptrend is still intact but the large decline over the last two days represents an important warning sign and it’s probably better to look for new selling opportunities in the coming days, as long as 1.45-1.4650 will cap the upside. The economic schedule is lighter today, but there are some important events later this week.
Trading strategy: looking to sell on potential pullback to 1.4550, stop at 1.4610 (0.5% risk), target open
Support: 1.4300, 1.4250, 1.4150 and 1.3900
Resistance: 1.4450/75, 1.4550 and 1.4650
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish
- EURUSD 4hrs chart 5-9-2011
- EURUSD daily chart 5-9-2011