Trading strategy: standing aside
The euro continues to weaken against the dollar, slipping below 1.2300 in yesterday's quiet sessions. Minor resistance is now formed around 1.2300, followed by 1.2340/50 and 1.2430/50 higher. Intra-day sentiment is bearish at the time of writing but a potential break above 1.2340 would signal the resume of last week's recovery process, opening 1.2430/50. However, while upside attempts are capped below 1.2500, the bottom zone at 1.2150 is in focus and further weakness is in the cards. Current exchange rate is 1.2284 @05:35 GMT
Support:1.2250, 1.2200, 1.2130/45 and 1.2000 Resistance: 1.2300, 1.2340, 1.2430/50, 1.2470/00, 1.2550 and 1.2620 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish
Cable failed to hold above 1.4500 last week and retreated back into the 1.44 region, still being supported by a trend line coming from last week's bottom at 1.4260, connecting the next higher lows. While the trend line stays intact, upside is slightly favored even though short-term studies are in a bearish configuration.
Gold maintains its bid tone due to tension in Korea and Middle East, slowly climbing to 1220, 1250 being in focus. Potential pullbacks are expected to face support within the 1195-1200 region. Buying dips or on breakouts higher are the two preferred bets for now.
Have a great day!