EURUSD Resuming Sell-Off, 1.40 Under Pressure

Quote of the day: “It is a very sad thing that nowadays there is so little useless information.” – Oscar Wilde

EURUSD – 1.4005 @07:38 GMT

Good morning. The modest recovery to 1.43 is over and the euro is retesting support zone into the 1.400-1.4050 region. Judging by how the daily chart looks like, a break lower is in the cards and next support region is seen at 1.3850-1.3900 where the 50% of last upleg from 1.2875 to 1.4935 resides. In case of an upside pullback, intraday resistance may cap the upside, limiting gains into today’s open region around 1.4130 or a bit higher, at 1.4180 but I doubt it will get too far.

Trading strategy: looking to sell on potential pullback to 1.4100, initial stop at 1.4160 (0.5% risk), target open

Support: 1.4000, 1.3900 and 1.3850
Resistance: 1.4100, 1.4130/50 and 1.4200
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish

EURUSD daily chart 5-23-2011
EURUSD daily chart 5-23-2011
EURUSD hourly chart 5-23-2011
EURUSD hourly chart 5-23-2011
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About abwehra group

The Art&Science of Trading Gold
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