EURUSD - 1.3843 @06:45 GMT
Trading strategy: holding a portion of yesterday's long @1.3760 with target at 1.3900; will consider buying again on potential pullback to 1.3750/60
Good morning. 1.3750 is finally breached as the euro rallied yesterday, climbing above $1.38. My plan to buy on break above 1.3750 worked well and I've been watching for this setup since last week although Friday's correction was misleading. However, I think it's a good example that it's never late to buy on strength when a trend is well established and if it turns against you, at least you don't have to blame yourself for trying to outsmart a multi-trillion dollar market. Now that 1.3730/50 no longer caps the upside - we can look higher as October-November's top side is probably the next bull train station. Potential pullbacks from here will probably face support around former resistance zone - at 1.3750 - so it may be a good level to buy dips. The ADP Nonfarm Employment Change at 13:15 GMT is today's most notable event in the Forex Calendar.
Support: 1.3800, 1.3750, 1.3650 and 1.3575/00
Resistance: 1.3860, 1.3900 and 1.400
Market sentiment: long term - mixed, medium term - bullish, short term - bullish, intraday - bullish
- EURUSD 4hrs chart 2-2-2011
- EURUSD daily chart 2-2-2011