Trading strategy: small long at 1.2655, stop at 1.2585 (0.5% risk), 1st objective at 1.2705, 2nd objective at 1.2805
The euro has extended gains above Tuesday's top at $1.2738, reaching $1.2777 - few points below the 50% retracement of last down leg from 1.3690 to 1.1875. Technical readings are suggesting a healthy uptrend on a short-term basis and no signs of exhaustion are seen yet. While the euro continues to push to the upside, not losing strength to $1.24 and below, the 1.3 psychological barrier remains in focus and it seems a matter of days, at current pace, until it will be reached. On a medium term basis, a sustained break above the 1.3 handle will provide the green light for longer term bullish positions, and the change will most likely be confirmed by the COT sentiment charts. On intra-day basis - 1.2700 seems pretty stable but if you look for a safer support zone, then 1.2620/50 could be the one. On the upside, the said 50% retracement at 1.2785 is the most notable resistance until 1.3. Looking at the daily charts, there's also a trend line coming from 1.3445 of February 19, connecting the next lower lows and the top of May 10, at 1.3095, when the market spiked up when the European Union officials approved a $1 trillion bailout to stabilize the zone's currency and rescue Greece. The said trend line currently stands around 1.2780. Current exchange rate is 1.2743 @06:10 GMT
Support: 1.2700, 1.2620/60, 1.2600, 1.2550 and 1.2500/20 Resistance: 1.2785/00, 1.2900 and 1.3000 Market sentiment: long term - bearish, medium term - bearish, short term - bullish, intra-day - bullish
- EURUSD daily chart 7-15-2010
- GBPUSD 4hrs chart 7-15-2010
- Gold 4hrs chart 7-15-2010
Have a good day!