Quote of the day: The hard reality of trading is that, if you want to create consistency, you have to start from the premise that no matter what the outcome, you are completely responsible. - Mark Douglas

EURUSD - 1.3323 @06:39 GMT

Trading strategy: looking to buy on pullback to 1.3230, stop at 1.3170 (0.5% risk), 1st objective at 1.3280, 2nd objective at 1.3400

Good morning. The euro had a tremendous week, recovering from 1.2870 to as high as 1.3450 where it faced multi-week resistance. Momentum studies are bullish on a short-term basis since the pair has broken above 1.3200 and current pullback from 1.3430/50 seems corrective - sentiment remaining intact as long as 1.3200-1.3250 will be a stable bottom. Other pairs have recovered strongly last week - such as EURCHF and EURJPY - both breaking above previous lower high zones, signaling a trend reversal on short-term basis. Cable was even a better performer, flirting with the 1.6 psychological barrier already - overall looking bullish on both short and medium term studies. Looking for buying opportunities on pullback or break higher seems a good plan for now.

Support: 1.3300, 1.3230/50, 1.3200 and 1.3150
Resistance: 1.3400, 1.3430/50 and 1.3500
Market sentiment: long term - mixed, medium term - bearish, short term - bullish, intraday - bearish

EURUSD daily chart 1-17-2011
EURUSD 4hrs chart 1-17-2011

USD Index

USD Index daily chart 1-17-2011

Have a great day and good luck trading