Thursday, September 3, 2009

Some mixed signals coming off the EUR/USD yesterday as the pair charged through resistance at 1.4255, signaling that the euro bulls are not going down without a fight. After the third bounce off support around 1.4200 the pair jumped 100 pips in 3 hours before easing off just below 1.4300. This latest thrust signals possible strength left in the Euro but I expected the upside to be limited by resistance at 1.4300 and the intersection of two trend resistance lines (yellow on chart below) just above 1.4300.

Trading Idea: Indicators are mixed, but I would look to sell with a tight stop in the 1.4315 area with an eye back down to 1.4260 and 1.4225.

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