Quote of the day: “Fight for your opinions, but do not believe that they contain the whole truth, or the only truth.” – Charles A. Dana
EURUSD – 1.4610 @06:50 GMT
Good morning. The euro is trading lower, pulling back from $1.4690 on Greek bailout uncertainty. Support at 1.4550/60 is intact and the pair holds into the lower half of 1.46 region at time of writing, ahead of ECB rate decision and press conference – today’s most important event in the FX Calendar, as President Trichet is likely to signal a rate hike next month. My plan to hold long on the break above 1.4650 turned bad and I exited for a loss on yesterday’s decline towards support zone. Now that the pair is back below 1.4650, but holds above 1.4550, I’m looking again for an exit out of this range. Upside is slightly favoured for now but the problems in Greece are adding pressure to current EUR recovery, so keeping an eye on this support zone for a potential breakdown -return to 1.44 is probably worth it.
Trading strategy: looking for a buying opportunity on break above 1.4650, initial stop at 1.4610 (0.5% risk), target open. Secondary plan is to sell on break of support at 1.4550/60, with an initial stop at 1.4610 (0.5% risk), target open
Support: 1.4600, 1.4550/60, 1.4500, 1.4450 and 1.4400
Resistance: 1.4650, 1.4700, 1.4740/60, 1.4800 and 1.4900
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bearish
- EURUSD 4hrs chart 6-9-2011