Trading strategy: small long at 1.2500, stop at 1.2430 (0.5% risk), 1st objective at 1.2550, 2nd objective at 1.2650
The euro continues to challenge the upside - breaking above $1.26 yesterday and it looks comfortable around these levels. No signs of reversal or trend exhaustion are seen yet, therefore pullbacks to the downside could be corrective only, not affecting the short-term bias. The overall sentiment is bearish and we should keep in mind that the euro is down 2000 points from where it was at the end of 2009. However, corrections failed to impress and were all short-lived into a 400 points range. Is this rally the long-awaited correction which may aim some fib levels of the full decline? It certainly looks so, now that 2008 and 2009 bottoms are again positioned South of current market levels - providing technical support. Important support levels are now set at 1.2400/50 and 1.2300. As long as 1.2300 is safe and a daily close below is unlikely - more upside action will be favored, $1.3 being the key objective. Current exchange rate is 1.2592 @06:08 GMT
Support: 1.2560, 1.2500/20, 1.2465, 1.2400 and 1.2300 Resistance:1.2660/70, 1.2700 and 1.2800 Market sentiment: long term - bearish, medium term - bearish, short term - bullish, intra-day - slightly bearish
- GBPUSD 4hrs chart 7-7-2010
- AUDJPY 4hrs chart 7-7-2010
- USDCAD 4hrs chart 7-7-2010
- Gold daily chart 7-7-2010
I wish you a sunny day!