Tuesday, July 7, 2009


The EUR/USD, as expected, made a bearish move to 1.3875, but has since rebounded to just below resistance at 1.4000 (pair currently at 1.3970). These moves basically followed US stocks during the US session - as stock lost value midday the dollar gained strength and as the stocks moved into the positive area (barely) the dollar also lost its value. I am still overall bearish on the pair and will continue to sell at resistance, and we have several layers of resistance above current price action. Trading Idea: Nearest resistance is at 1.4000, with 1.4025 and 1.4050 above that all provide downward pressure. Be wary of a short squeeze around the lower levels especially. Shorts preferred with targets at 1.3955, 1.3905 and eventually 1.385

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