EURUSD: Recovery Still Weak

Quote of the day:“If the facts don’t fit the theory, change the facts” – Albert Einstein

EURUSD – 1.4250 @06:40 GMT

Good morning. 1.4230/50 is currently providing minor intraday support after yesterday’s recovery initiated at 1.4130. Current upside pullback is still weak compared to last down leg from 1.4935 to 1.4050, so there’s still more room EUR to advance higher, in order to challenge notable barriers at 1.4400/50 and 1.4500. Short-term sentiment is bearish while the hourly charts are bullish at time of writing and as long as the pair holds above 1.4200/30. I closed my short trade at breakeven on yesterday’s recovery but will look for more selling opportunities in the coming sessions: the 1.4350-1.4400 region seems a decent selling region if current recovery continues, but selling on the potential break below current support zone at 1.4200 is also a viable scenario. Today’s most important event in the Forex Calendar is the FOMC Meeting Minutes at 19:00 GMT.

Trading strategy: looking to sell on potential pullback to 1.4350, initial stop at 1.4410 (0.5% risk), target open

Support: 1.4200/30, 1.4130/50, 1.4050, 1.4000 and 1.3900
Resistance: 1.4280/00, 1.4350/70, 1.4400 and 1.4500
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bullish

EURUSD 4hrs chart 5-18-2011
EURUSD 4hrs chart 5-18-2011

About abwehra group

The Art&Science of Trading Gold
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