The euro rose to a fresh all-time high at 1.3842 versus the dollar and the pair remains bullish as long as the 1.3770 support holds. Needs to take out 1.3850 resistance, a break trough that point, could take the pair to the zone around 1.3880 and finally 1.3900.
Key factors moving the EURUSD trading this week;
1- US housing sector data release
2- US Stocks market ---> rising risk aversion could spell disaster to the continuation of carry trades.
3- The US subprime mortgage woes.
Monday's Pivot Points:
R2 = 1.3878
R1 = 1.3851
PP = 1.3814
S1 = 1.3787
S2 = 1.375
Monday's Calendar:
1- none.
Monday's Strategy:
1- Asian high low breakout. (will discuss about this setup later).
2- Buy euro on dips, 1.3770, 1.3750 are good long entry level.
3- Sell euro on peaks, 1.3840, 1.3820 are good short entry level.
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