Trading strategy: small short at 1.4330, stop at 1.4380 (0.5% risk), 1st objective at 1.4280, 2nd objective at 1.4230
The euro dropped below $1.4260 yesterday, reaching a fresh 3 months low at 1.4220 - now far from the 200 days SMA coming around 1.4195. In case of extended weakness against the dollar, a potential bottom may form at 1.6200 - if the 200 days SMA will provide a stable support. On the higher region - intra-day resistance formed by the downward trend line coming from 1.5140 is now seen around 1.4310 - corresponding to current week's open quote - therefore current bearish structure will remain intact as long as the said upside barrier will provide a decent region to renew selling interest. Current exchange rate is 1.4265 @07:30 GMT
Support: 1.4220, 1.4195/00, 1.4150 and 1.4100
Resistance: 1.4300/10, 1.4350/70, 1.4400 and 1.4470/90
Market sentiment: long term - bullish, medium term - slightly bullish, short term - bearish, intra-day - neutral
Trading strategy: small short at .7040, stop at .7080 (0.5% risk), 1st objective at .7000, 2nd objective at .6960.
The tripe bottom formation at .7040 has failed to provide a reversal point and the NZ dollar continued its drop to as low as .6970. Since breaking down below .7040/50 - which now provides the first intra-day resistance, next downside objective is emerging on the .6900 handle. Short-term sentiment is bearish and no change is expected within the coming days, as the downtrend is currently strong enough to limit potential gains towards .7150/60 - level which has to be broken in order to resume uptrend. Current exchange rate is .6994 @07:30 GMT
Support: .6950/70, .6900 and .6850.
Resistance: .7000, .7040/50 and .7100
Market sentiment: long term - bullish, medium term - bullish, short term - bearish, intra-day - bearish
Have a great day!
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