Trading strategy: short at 1.2040, stop at 1.2110 (1% risk), objective at 1.1900
Support at 1.2150 could not hold and was breached last Friday - the euro extending losses to as low as 1.1875 after today's open. Resistance is now in place around 1.2050 - formed by a downward trend line connecting previous lower lows, followed by 1.2140/50. Support starts at 1.1875, backed by 1.1750 and 1.1650. More important support comes at 1.1210 - 61.8% retracement of full upward move from .8225 to 1.6035. If the euro's decline will continue at same pace, it should reach 1.1210 by the end of this month. Looking at the short-term studies - there's nothing to suggest a recovery and more downside is in the cards. A potential pullback towards 1.2050 should offer fresh selling opportunities - with targets below the 1.1875 low. Current exchange rate is 1.1927 @06:05 GMT
Support: 1.1875, 1.1800, 1.1750 and 1.1650 Resistance: 1.2000, 1.2050 and 1.2150 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish
Trading strategy: standing aside
Cable's decline below the rising trend line which provided support during the last two weeks has brought the 1.44 region back in focus as 1.4500 failed to hold and is again providing resistance, in case of rallies. Short-term sentiment is bearish and a break above Friday's open price is needed a change. Up to Friday's open at 1.4610 - intra-day resistance levels are seen at 1.4500 and 1.4550/75. Support at 1.4400/10 should hold or the losses may extend to 1.4250 - recent bottom. Current exchange rate is 1.4452 @06:05 GMT
Support:1.4400, 1.4300 and 1.4250 Resistance: 1.4500, 1.4550 and 1.4610 Market sentiment: long term - bearish, medium term - bearish, short term - bearish, intra-day - bearish
Have a good day!