Euro Recovered Some Losses but Remains Vulnerable

Quote of the day: “When a man tells you that he got rich through hard work, ask him: ‘Whose?’ ” – Don Marquis

EURUSD – 1.4236 @06:45 GMT

Good morning. There’s a nice daily pin bar formed yesterday on the daily charts, as the euro recovered on news that Greece agreed to a five-year austerity package with EU and IMF. However, current recovery could be short-lived as there’s much pressure on the euro and if we look at intraday technical levels, resistance stands into the 1.4285-1.4320 region, formed by the fib retrace values of last down leg – as seen in the chart below. Basically, we’re almost back to levels traded yesterday morning. Important events in the Forex Calendar are the German Ifo and US GDP later today. I remain bearish on EURUSD, looking for more selling opportunities and I think that my previous plan stands valid, therefore I’m waiting for the euro to continue the recovery towards 1.4300/30 region.

Trading strategy: looking to sell on potential pullback to 1.4300, initial stop at 1.4360 (0.5% risk), target at 1.4220

Support: 1.4200, 1.4100/25, 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 – mixed

EURUSD hourly chart 6-24-2011
EURUSD hourly chart 6-24-2011
EURUSD daily chart 6-24-2011
EURUSD daily chart 6-24-2011

About abwehra group

The Art&Science of Trading Gold
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