Euro Recovers, but Still Vulnerable Ahead of Greek Austerity Vote

Quote of the day:“Truth, like surgery, may hurt, but it cures.” – Han Suyin

EURUSD – 1.4275 @06:40 GMT

Good morning. It seems there’s still optimism on Greek as the euro recovered almost 2 big figures yesterday. Or was it short covering in a corrective cycle? One thing is certain: there’s much pressure in the market and in case the Greek parliament rejects the austerity measures demanded by creditors – there could be no plan B. My plan to sell at 1.4200 has failed, but I remain bearish on near term, as long as the 1.45-1.46 region stays at a safe distance. Trichet’s Speech is the most important event in the economic calendar today. With 1.4300 in focus at time of writing, I think that upside is slightly favoured and a break above minor resistance formed by Friday’s top, also today’s opening zone, would suggest further upside action towards mid 1.44.

Trading strategy: standing aside

Support:1.4200/30, 1.4150/70, 1.4100/25 and 1.4040/70
Resistance: 1.4320, 1.4350/60, 1.4400, 1.4450/75 and 1.4500
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bullish

EURUSD 4hrs chart 6-28-2011
EURUSD 4hrs chart 6-28-2011

About abwehra group

The Art&Science of Trading Gold
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