EURUSD Getting Closer to Key Resistance Region

Quote of the day: “A successful individual typically sets his next goal somewhat but not too much above his last achievement. In this way he steadily raises his level of aspiration.” – Kurt Lewin

EURUSD – 1.4275 @06:50 GMT

Good morning. the euro continues to climb higher at a slow pace as yesterday’s range was lower than average. On the hourly charts, the short-term uptrend looks healthy but the daily charts are still bearish and current support levels seem fragile. 1.4230/50 is 1st support level, backed by yesterday’s bottom at 1.4200 and 1.4130/50 lower. Resistance starts at 1.4300, followed by 1.4350 and 1.4400. The Economic Calendar is quite busy today and the US trading session is likely to be volatile – we have the Initial Jobless Claims at 13:30 GMT, Trichet’s speech at 14:00 GMT and Existing Home Sales at 15:00 GMT. I remain bearish on EURUSD for now as the recovery is weak and important resistance levels have yet to be tested. One potential selling point in case of rally is into the 1.4350-1.4400 range.

Trading strategy: looking to sell on potential pullback to 1.4370, initial stop at 1.4430 (0.5% risk), target open

Support: 1.4230/50, 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 hourly chart 5-19-2011
EURUSD hourly chart 5-19-2011
EURUSD daily chart 5-19-2011
EURUSD daily chart 5-19-2011

About abwehra group

The Art&Science of Trading Gold
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