Quote of the day: “We know what a person thinks not when he tells us what he thinks, but by his actions.” – Isaac Bashevis Singer
EURUSD – 1.4631 @06:40 GMT
Good morning. EURUSD is little changed since yesterday and holds below 1.4650 interim resistance after testing intraday support at 1.4550. The slow decline to 1st support region that I highlighted yesterday was corrective, therefore signs of trend exhaustion are yet to be seen. I think that a test of 1.4750, even 1.4900, is in the cards within the next days – as long as daily studies remain bullish / while holding above former resistance at 1.4400-1.4450. Today’s key event in the economic calendar is Bernanke’s Speech at 19:45 GMT. Buying on the break of yesterday’s top at 1.4660 is a plan to consider, as well as looking for selling opportunities on a failed on the potential test of 1.4750-1.4800 later today.
Trading strategy: looking to buy a small size on a 4-hrs bar close above 1.4650, initial stop at 1.4610 (0.5% risk), target at 1.4750
Support: 1.4600, 1.4550/60, 1.4500, 1.4450 and 1.4400
Resistance: 1.4650, 1.4700, 1.4740/60 and 1.4900
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bullish
- EURUSD 4hrs chart 6-7-2011