EUR/USD recovers some ground
February 9, 2010 - 6:28 am by Juan P. Bejarano · Leave a Comment
Daily Fundamentals:
The Euro is regaining some ground against the US Dollar after news that ECB President Trichet departed a meeting in Sidney one day early to gather w/European Union leaders prompted speculation aid may be provided to Greece.
Debt concerns remain, however, some players have cut exposure to Euro shorts in the near term as any help or resolution to Greece, Portugal, and Spain could create a short squeeze rally.
Strong resistance comes in at 1.3805 where supply should be found. Following this level we encounter 1.3860 where a break above here could create a sharp short squeeze towards 1.4000.
We continue bearish on the Euro for the time being and any rallies should be used as selling opportunities. Even if markets continue to consolidate we have to be aware of the risks involved in holding short positions in the near term.
No major data is expected Tuesday — which could lead to further eur/usd recovery gains if Wall Street trades higher. Traders should be attentive to any news regarding the EU economic summit (Thurs.).
Trend:
Weekly : Bearish
Daily: Bearish
Hourly: Bearish
Support & Resistance:
From current levels, 1.3706, the pair finds initial resistance at 1.3746, followed by 1.3805, and 1.3858.
Key support to watch is the 1.3621 where a break of such would open targets to the 1.3585 level, followed by 1.3488 and 1.3420.
Strategy:
Stand aside for now. Preferred strategy looks to sell on rallies. 1.3805 followed by 1.3858 could provide some near term retracements if reached
DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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