Quote of the day: There are lies, damned lies and statistics. - Mark Twain
EURUSD - 1.3092 @06:53 GMT
Trading strategy: standing aside
Good morning. The euro had a solid rally yesterday, climbing as high as 1.3% against the dollar. Portugal's bond auction was successful - hence providing clues that Portugal may not seek a bailout. Intra-day resistance into the 1.3070-1.3100 region was breached yesterday, so my plan to look for a selling opportunity at 1.3090 was a good example not to go against the market when reversal patterns are lacking.
The rising trend line coming from late August on the daily charts is the next upside barrier, currently around 1.3140 - and momentum studies will turn positive on short-term basis in case of break out. Intra-day charts are slightly bearish at time of writing as the euro is pulling back from recent top side, but support is now seen around 1.3070, backed by 1.3000/20. Today's economic calendar is filled with important events such as BOE and ECB Interest Rate Decisions, ECB Press Conference, US Initial Jobless Claims, Trade Balance and Bernanke's speech.
Support: 1.3070, 1.3000/20, 1.2950, 1.2870/00 and 1.2800
Resistance: 1.3140, 1.3200/15 and 1.3300
Market sentiment: long term - mixed, medium term - bearish, short term - mixed, intraday - slightly bearish
- EURUSD 4hrs chart 1-13-2011
- EURUSD daily chart 1-13-2011
I'll be back later today to share some other interesting charts
Have a great day and good luck trading!