Trading strategy: standing aside
The euro climbed on signs that Greece may reach an agreement on budget cuts, needed for a potential $159 billion bailout, but remains capped at 1.3260/80 former support of March breached Tuesday due to S&P downgrading Greece and Portugal ratings. The whole euro zone sentiment is under pressure as fears of Greece contagion persist, therefore the euro is likely to face a difficult task while trying to advance higher, to 1.3500. On the other hand, short positions are at record level and a potential short squeeze may occur any time. What's needed for that is some catalyst news to sound better than the tons of news coming each day: more action and less talking. Meanwhile, minor pullbacks to the upside are facing massive selling and the $1.30 level is first bears' key target. Some month-end profit taking is likely today, favoring a retreat to the upside - but will the barriers at 1.3300 and 1.3350 permit an extended rally? Current exchange rate is 1.3242 @05:43 GMT
Support: 1.3200, 1.3150, 1.3100/15 and 1.3000 Resistance: 1.3280/00, 1.3350 and 1.3400 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bullish
Trading strategy: perhaps buying at 1.5230 with a stop at 1.5180(0.5% risk), 1st objective at 1.5280, 2nd objective at 1.5350
April's bottom at 1.5150 provided support yesterday and cable recovered, getting back into the 1.53 region, currently sitting in the middle of this month's range. Important resistance comes around the 1.5500 level, followed by 1.5570 and 1.5620. Intra-day support starts at 1.5300, being followed by 1.5250 and 1.5150 lower. In case of a pullback, 1.5220-1.5250 is expected to provide support, limiting losses. A potential daily close above 1.5400 will confirm that uptrend resumed and the drop to 1.5150 was corrective. Current exchange rate is 1.5326 @05:43 GMT
Support: 1.5300, 1.5250 and 1.5150 Resistance: 1.5400, 1.5500/20, 1.5570 and 1.5620 Market sentiment: long term - bearish, medium term - bearish, short term - neutral, intra-day - bullish
Have a good day!