Tuesday, August 25, 2009

Eurusd

Yesterday’s buy signal at 1.4250 was never reached, though it came close when price action dipped to 1.4279 before jumping back up 60 pips. Today I am looking for more of the same with signals pointing towards a long between 1.4250-1.4275. It is really taking a lot of determination for me not to sell into one of these rallies as I think the fundamentals don’t support the latest Euro strength, but if I was going to sell it would be up around 1.4450. In the short-term I will continue to buy dips near support, as the up-trend appears to be intact. We do have the US consumer confidence report coming out at 14:00 GMT and though I don’t expect it to move the market much I will nonetheless sit out for the few hours hours around the event risk.

Trading Idea: Longs favored on dips near support above 1.4250. Tight stops, targets at 1.4300, 1.4345, 1.4380 and eventually 1.4445.

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