Trading strategy: standing aside
The euro switched course after flirting with 1.2750 and was back around Friday's closing level at 1.2915 30 minutes ago. The break above interim resistance region between 1.2860 and 1.2900 confirms that uptrend resumes but we have to keep an eye on the 1.2850/60 region as it is under pressure at the time of writing. Today's results of bank stress tests in Europe are in focus as they should reassure investors that the euro is not in danger.
Positive results will probably provide the green light to challenge $1.3 again. Another important data release today is the German Ifo Business Climate Index at 09:00 GMT. Upside remains favored for now and further gains are also favored by EUR's appreciation against the Yen - following the equities' rebound. If current pullback continues, 1.2750 will be the next downside objective. Current exchange rate is 1.2871 @05:57 GMT
Support: 1.2850, 1.2750/70, 1.2685/00 and 1.2600 Resistance: 1.2920/50, 1.3000/25 and 1.3100 Market sentiment: long term - bearish, medium term - slightly bearish, short term - bullish, intra-day - bullish EURUSD 4hrs chart 7-23-2010 More trading setups
Have a great weekend!