Quote of the day: If we did go into a recession, something that's always possible for the U.S. or Europe, we could lower interest rates and expand the money supply without worrying about the price of gold. - Jeffrey Sachs
Trading strategy: looking to sell at 1.2500, stop at 1.2570 (1% risk), objective at 1.2380
The euro recovered some lost ground yesterday after printing a fresh low at 1.2233, level which was last seen in April 2006. Overall short-term and medium term sentiment remains highly bearish and former support levels are providing upside barriers - such as 1.2400/15, followed by a more notable resistance around 1.2500. As the euro is down 7% this month, pullbacks toward 1.27-1.28 won't affect the current sentiment and only above 1.3100/50 would signal that a prolonged corrective cycle is underway. However, it should be quite hard to get that high since bears are selling more on any rally. Meanwhile, a re-test of 1.2400/15 has good chances to materialize in a squeeze to 1.2500/50 in the coming trading sessions. Current exchange rate is 1.2364 @06:08 GMT
Support: 1.2300, 1.2200/30, 1.2100 and 1.2000 Resistance: 1.2400/15, 1.2500 and 1.2550 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - slightly bullish
Trading strategy: standing aside
Cable's recovery after reaching 1.4250 yesterday is still underway and it is struggling against the 1.4500 resistance. Next barrier comes at 1.4645 - 50% retracement of 1.5045-1.4250. Short-term sentiment is bearish and it's too early to look for a reversal - but rather a correction: 1.4650 or 1.4740 being key levels where selling may resume, if 1.4500 will be breached in next attempts. Current exchange rate is 1.4458 @06:08 GMT
Support: 1.4400, 1.4300 and 1.4250 Resistance: 1.4500, 1.4550, 1.4650 and 1.4740 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - slightly bullish
Have a good day!