EURUSD Weakening Ahead of EU Ministers Meeting

Quote of the day: “To find a fault is easy; to do better may be difficult.” – Plutarch

EURUSD – 1.4265 @07:12 GMT

Good morning, everyone. The euro weakened after reaching a weekly high at 1.440, not far below last week’s top side which is an interim resistance, followed by a more important barrier into the 1.49-1.500 range. The dollar is stronger across the board and the EUR is likely to remain under pressure as the European leaders are meeting today in Brussels to discuss the Greece’s financial issues, so keep an eye on intraday support at 1.4270/00 but also on resistance around 1.4360 if price pulls back to test yesterday’s support into the mid 1.43 region. Important events in the economic calendar are the US New Home Sales, Initial Jobless Claims and Trichet’s Speech later today. I remain bearish on EURUSD and I’m currently looking for a selling opportunity either around 1.4300/20 or 1.4360, depending how strong a potential pullback would be.

Trading strategy: looking to sell on potential pullback to 1.4320, initial stop at 1.4380 (0.5% risk), target open.

Support: 1.4270/00, 1.4200, 1.4100, 1.4070, 1.4000/20 and 1.3900
Resistance: 1.4350/60, 1.4400, 1.4450/75, 1.4500 and 1.4600
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bearish

EURUSD 4hrs chart 6-23-2011
EURUSD 4hrs chart 6-23-2011

About abwehra group

The Art&Science of Trading Gold
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