Quote of the day: “A strong positive mental attitude will create more miracles than any wonder drug.” – Patricia Neal
EURUSD – 1.4071 @07:13 GMT
Good morning. The euro is recovering some ground after yesterday’s drop to 1.3970 but remains weak on both daily and 4-hrs charts due to debt concerns. Intraday resistance starts at 1.4100/30 followed by 1.4150/60 and 1.4200 higher. Hourly charts are slightly bullish since recovering above 1.400 yesterday but the current upward movement is likely corrective, so keep an eye on the next resistance points towards 1.4200. The German Ifo Index and US New Home Sales are today’s most important events in the economic calendar. I remain bearish on EUR for now as the Euro-zone debt problem is in focus and will continue to look for selling opportunities both on fading rallies or a resume of current decline – break below hourly trendline support into the 1.4030/50 zone.
Trading strategy: looking to sell on potential pullback to 1.4130, initial stop at 1.4190 (0.5% risk), target open
Support: 1.4030/50, 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 – slightly bullish
- EURUSD hourly chart 5-24-2011