Euro Falls Further on Greek Crisis, 1.400 in Focus

Quote of the day: “Disbelief in magic can force a poor soul into believing in government and business.” – Tom Robbins

EURUSD: 1.4140 @06:52 GMT

Good morning. The euro continues to fall across the board as the Greek crisis intensifies, reaching lows below $1.41, after losing 300 points yesterday. Now that most interim support levels have been broken, it’s time to look at 1.400 and 1.37, where next important support levels are seen. If there will be any corrective pullback, I doubt it will be too large, so looking for selling opportunities on potential rallies towards 1.4200 or 1.4250 makes quite some sense. A break below 1.4100 looks like a good short trigger, too. The Initial Jobless Claims is the most important event in the Forex Calendar today.

Trading strategy: looking to sell on potential pullback to 1.4220, initial stop at 1.4270 (0.5% risk), target open. Secondary plan is to look for a selling opportunity on break of 1.4100, with an initial stop at 1.4150

Support: 1.4100, 1.4000 and 1.3900
Resistance: 1.4200/20, 1.4250, 1.4300 and 1.4330/50
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish

EURUSD 4hrs chart 6-16-2011
EURUSD 4hrs chart 6-16-2011

About abwehra group

The Art&Science of Trading Gold
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