Daily Analysis And Trading Strategies 11-23-09
Quote of the day: A collapse in U.S. stock prices certainly would cause a lot of white knuckles on Wall Street. But what effect would it have on the broader U.S. economy? If Wall Street crashes, does Main Street follow? Not necessarily. — Ben Bernanke
EURUSD
Trading strategy: small long at 1.4890, stop at 1.4830 (0.5% risk), 1st objective at 1.4950, 2nd objective at 1.4990
The euro trades higher today, recovering after Friday's dip, testing the downward trend line from 1.5045 which comes around 1.4950. The short-term charts show prolonged indecision as this range of 1.4820/50-1.5 has been valid for the last two weeks. It is not easy to advance higher above 1.5 but the dollar bulls are facing difficulties too – the 1.4820/50 region being a stable bottom which held on several attempts. Will 1.4950 breach? Forming support above 1.4950 would definitely help providing a fresh bottom from where to initiate rallies towards 1.5050, as those emerging from 1.4880/00 became exhausted too early. Intra-day sentiment is positive and won't switch into the bearish territory as long as 1.4850 holds. Short-term momentum is neutral due to the ongoing consolidation but a potential daily close above 1.4950 would provide a key bullish confirmation. Upside is likely to remain favored for now. Current exchange rate is 1.4928 @07:00 GMT
Support: 1.4900, 1.4850, 1.4800/20
Resistance: 1.4950, 1.5000/15, 1.5050/60 and 1.5100/15
- EURUSD 4hrs chart 11-23-2009
I'll be back later today posting an update on EURUSD and also some other pairs.
Have a great new week!
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