Update for: 2012-07-09 - 2012-07-15

Posted on: Sunday, 08 July 2012 21:27


EURUSD: 1.2287

 Short-Term Trend:  downtrend


EUR declined sharply last week as the 1.2670 level turned out to be a strong resistance initially. With this decline our recent bearish stance has been justified completely. Now, the daily chart is in strong downtrend mode again and I expect to see losses twd the next Fibo level at 1.2145. Then a decline twd 1.1820 will become a real possibility.
On the upside, only a move abv the trendline shown on the chart above (currently at 1.2933) will negate the current bearish view. Of course, from a trading perspective this line is too far away from the current market. So, considering the huge decline last week, I favor lowering the stops to a breakeven.

Strategy: Holding short from 1.2600 is favored. Stop=1.2600.

Next Update: Sun, 07/15/2012.

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