Article originally published on innerfx.com and republished here with permission
Good morning. The euro recovered across the board but pulled back against the dollar yesterday, so the question now is whether current decline is corrective or not. Let’s take a look at a few interesting charts
Yesterday’s decline suggests that Euro’s recovery is corrective. See the daily chart below.
Market sentiment: intraday – bearish, short-term – slightly bullish
Potential trade strategy: to sell on rally to 1.3100, stop above 1.3170, target at 1.2850
EURUSD daily 4-18-2013
Here’s the 4-hrs chart, where I highlighted the dynamic resistance range formed by the moving average lines. As long as it holds below 1.31, downside is favored
EURUSD 4hrs 4-18-2013