Quote of the day: The place where optimism flourishes most is the lunatic asylum. - Havelock Ellis


Trading strategy: standing aside

The euro is well bid, holding gains near the 1.2365 resistance formed by the 61.8% retracement of 1.2670-1.1875. Short-term sentiment remains bullish and more upside action seems likely and support could limit losses in case of a pullback into the 1.2250/70 region. Below that - next support comes at 1.2150/70 which was a key barrier on both sides for 4 weeks. If 1.2365 breaks - then 1.2670 could be next objective. However, keep in mind that current euro's recovery is driven by a lack of bad news and some short-covering. It only takes a minor kick to resume the big avalanche. Current exchange rate is 1.2325 @06:12 GMT

Support: 1.2250/70, 1.2150, 1.2070/00 and 1.2000 Resistance: 1.2350/65, 1.2400 and 1.2500 Market sentiment: long term - bearish, medium term - bearish, short term - slightly bullish, intra-day - bullish


EURUSD 4hrs chart 6-16-2010

Other setups

GBPUSD - 1.4803

GBPUSD 4hrs chart 6-16-2010

AUDUSD - .8633

AUDUSD 4hrs chart 6-16-2010

USDCHF - 1.1300

USDCHF 4hrs chart 6-16-2010