Trading strategy: standing aside
The euro opened higher, recovering some losses as European policy makers put together a loan package worth nearly $1 trillion to support euro's stability. The euro trades currently near 1.300, almost 500 points above Thursday's low and 360 points below this month's open at 1.3360. The recovery may continue but there are important barriers in the upper territory starting at 1.3000, followed by 1.3250 and 1.3450-1.3500. Short-term sentiment will turn positive in case of a sustained break above 1.3250 within the coming days and if it doesn't happen, it will mean that the $1 trillion package and the rescue plan are complete failure and last week's decline will be light compared to what may happen, resuming the decline. Current exchange rate is 1.2975 @06:10 GMT
Support: 1.2850/60, 1.2800, 1.2730 and 1.2600 Resistance: 1.3000, 1.3100, 1.3250 and 1.3450 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bullish
Have a good day!