Friday, August 13, 2010

EURUSD Trading Strategy

Trading strategy: small short at 1.3030, stop at 1.3090 (0.5% risk), objective at 1.2930

The euro found support at 1.2800 after the free fall from 1.3300 but the ongoing recovery is not convincing. Former support at 1.3000 will probably provide resistance if the euro continues to climb from here, and a daily close above 1.3000 should be a decent confirmation of uptrend resumption on short-term basis. Technically the uptrend is intact, despite the 500 points decline. Today’s most notable events in the economic calendar are the German GDP which came at 2.20% vs 1.30% expected, followed by the U.S. Retail Sales and CPI later today. Current quote is 1.2892 @06:07 GMT

Support: 1.2800/30, 1.2730, 1.2600 and 1.2500
Resistance: 1.2900, 1.3000, 1.3100 and 1.3250
Market sentiment: long term – bearish, medium term – slightly bullish, short term – slightly bearish, intra-day – slightly bullish

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