Tuesday, May 22, 2007

Dollar Holds Its Own..

Dollar staged a rally yesterday bringing euro down all the way to 1.3432. I expect the euro continues to range trade between 1.3430 and 1.3520 and will likely remain contained within that zone. However, we have the German and Euro-zone ZEW surveys at 4.00 pm and that could be just the catalyst to move the price action to push the pair higher.......or lower. As a result, euro may climb up towards resistance at 1.3520. On the other hand, a disappointing ZEW result could hurt, leading the pair down to 1.3400. I'm not sure..maybe that's just my wishful thinking..
Pivot Points;
R3 = 1.3602
R2 = 1.3562
R1 = 1.3512
PP = 1.3472
S1 = 1.3422
S2 = 1.3382
S3 = 1.3332
Trade ideas = buy 1.3430, 1.3390, sell 1.3495, 1.3520
Good luck guys..

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