EURUSD

Trading strategy: standing aside

Upside was capped by 1.3000 on Friday and the euro pulled back 100 points, but still holds gains above 1.2900. Short-term sentiment remains highly bearish and no signs of up trend exhaustion are seen yet. However, in case of extending current pullback below 1.29, we can look at 1.2700-1.2765 as a region where more will join the bull crowd. While 1.2400 is far below current rates, upside will remain favored on both short term and medium term basis. According to latest COT data, euro's appreciation towards the $1.3 caused more short-covering and the net shorts figure is back to levels of mid January. As mentioned in some of my previous reports - I expect the COT figures to turn positive once 1.3 breaks. Current exchange rate is 1.2905 @06:00 GMT

Support: 1.2870, 1.2830/50, 1.2785/00 and 1.2700 Resistance: 1.2950, 1.3000 and 1.3100 Market sentiment: long term - bearish, medium term - slightly bearish, short term - bullish, intra-day - bearish

EURUSD

EURUSD 4hrs chart 7-19-2010
EURO
EURO COT 7-19-2010

More setups

GBPUSD

GBPUSD
GBPUSD 4hrs chart 7-19-2010

EURCHF

EURCHF
EURCHF 4hrs chart 7-19-2010

Gold

Gold
Gold 4hrs chart 7-19-2010

Have a great day!