Dollar Under Pressure Ahead of Bernanke’s Testimony

Quote of the day: “A person always has two reasons for doing anything: a good reason and the real reason” – J.P. Morgan

EURUSD – 1.3996 @06:40GMT

Good morning, all. Euro’s decline has paused for now and former support region around 1.400 is forming resistance, which is being tested at time of writing. Well, it’s being tested since yesterday as price continues to consolidate orbiting around 1.4000 in a tight range. I closed my yesterday’s short at breakeven because I don’t like to wait while price is consolidating into resistance zone for almost 24 hours, as that usually suggests that we’re not dealing with a strong barrier, so I rather wait for the decline to resume, keeping an eye on the intraday support at 1.3950 where I’d be tempted to sell. Fed Bernanke is going to testify today on economy and debt crisis, this being the most important event in the economic calendar. I guess we all know that most of his speeches are dollar-negative, so the EUR might get a boost if it follows metals which are the first to benefit from Bernanke’s words – see Gold which is a few points below the all-time high today.

Trading strategy: standing aside; considering a potential short on potential break below 1.3950 with an initial stop at 1.4010

Support: 1.3950, 1.3900, 1.3850 and 1.3800
Resistance: 1.4000/30, 1.4050 and 1.4100
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – mixed

EURUSD 4hrs chart 7-13-2011EURUSD 4hrs chart 7-13-2011

 

Gold daily chart 7-13-2011Gold daily chart 7-13-2011

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About abwehra group

The Art&Science of Trading Gold
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