Update for: 2011-10-03 - 2011-10-09

Posted on: Sunday, 02 October 2011 10:58


EURUSD: 1.3384

 Short-Term Trend:  downtrend

Outlook: I personally turned bearish near 1.4400 with a target at 1.3520. Now this target has been achieved but obviously the downside pressure remains quite strong. Last week I said the trend was lower but the risk/reward ratio was not compelling. That is actually true now as well. Lower prices twd at least 1.3200 (but possibly much below that level) are expected but I can't find a low-risk entry here. The closest stop level that I can see for a short position here is abv 1.3720 - too far from the current market. So, a short position can be justified only if a rally develops. But if one remains short from higher levels, than there is probably no problem in holding this position for the next week or so.
Strategy: The trend is lower but the risk/reward ratio is not compelling now.

Next Update: Sun, 10/09/2011.


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