Trading strategy: looking to sell at 1.3315, stop at 1.3375 (1% risk), objective at 1.3200
The euro is orbiting around 1.3200 facing high downside pressure as talking on Greece problems continue and Spain was downgraded from AA to AA+ by the S&P - outlook being negative. The FOMC left rates unchanged, as widely expected, and retains extended period language. A fresh low was reached at 1.3114 in yesterday's whipsaw sessions and current recovery above 1.32 remains corrective in nature, lacking the chances of extending too far up. The overall sentiment remains highly bearish and most corrections are likely to face massive selling around key short-term levels, not far away, such as 1.3280/00 and 1.3500. Current exchange rate is 1.3227 @06:03 GMT
Support: 1.3200, 1.3150, 1.3100/15 and 1.3000 Resistance: 1.3280/00, 1.3440 and 1.3500 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bullish
Trading strategy: standing aside
Cable lacks the strength to recover from current weekly bottom around 1.5150 and feels heavy, providing clues that the decline will probably continue, next downside objective being 1.5070 - the 61.8% of last up leg from 1.4790 to 1.5520. Short-term sentiment is bearish and a recovery back above 1.5300 is needed to resume uptrend. Keep an eye on the 1.5125/50 support as a potential breakdown might be violent - accelerating towards next barrier at 1.5070. Current exchange rate is 1.5150 @06:03 GMT
Support: 1.5125/50, 1.5070/80 and 1.5000 Resistance: 1.5200, 1.5280/00, 1.5360, 1.5400 and 1.5500/20 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish
Have a great day!