EURUSD Weakness Intensifies, April’s Support Under Pressure

Quote of the day“Never look back unless you are planning to go that way.” — Henry David Thoreau

EURUSD – 1.4219 @07:30 GMT

Good morning. The sell-off continues and April’s lower side is under pressure as the EUR fell 250 points yesterday and doesn’t show any sign of vigor at this point. New intraday resistance is now formed around previous support zone – at 1.4280/00. The 50% retrace value of last up leg from 1.3430 to 1.4935, at 1.4180, is current support so keep an eye on it, as a potential breakdown could lead to a test of 1.400 in the next trading sessions. There are some interesting setups developing in other pairs now, such as GBPUSD – as I highlighted yesterday. The FX Calendar is quite busy today and we have the US Retails Sales, Initial Jobless Claims and Bernanke’s testimony later today.

Trading strategy: looking to sell on potential pullback to 1.4300, initial stop at 1.4360 (0.5% risk), target open. Another plan is to look for a selling opportunity on weakness – potential breakdown below 1.4170, with a stop at 1.4230 (0.5% risk), target at 1.400

Support: 1.4180/00, 1.4150, 1.4000 and 1.3900
Resistance: 1.4280/00, 1.4350/70, 1.4400/20, 1.4450/75, 1.4550 and 1.4650
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish

EURUSD daily chart 5-12-2011
EURUSD daily chart 5-12-2011
EURUSD hourly chart 5-12-2011
EURUSD hourly chart 5-12-2011

About abwehra group

The Art&Science of Trading Gold
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