Thursday, July 12, 2007

Not Much Follow Through

Interestingly enough, trading yesterday was quiet and mute, considering a wild and powerful move on Tuesday night. Euro will face resistance at 1.3780, followed by 1.3800 and 1.3830. If today the Euro get through the resistance zone at 1.3785, next target will be reaching and testing the 1.3809 level. I prefer to short euro around 1.3810-20. Nevertheless, the bearish sentiment continued to weigh on the US dollar.

Today's Pivot Points:
R3 = 1.3818
R2 = 1.3798
R1 = 1.3768
PP = 1.3748
S1 = 1.3718
S2 = 1.3698
S3 = 1.3668

Today's Calendar:
1-US Trade Balance 8.30 pm

Today's Strategy:
1- Asian high low breakout. (will discuss about this setup later).
2- Waiting for a nice sell signal from the hourly Cornflower setup. (refer to the chart)
3- Buy on dips, 1.3730 and 1.3700 provide as good supports.
4- Sell on peaks, 1.3785, 1.3800, 1.3815 provide as resistances.

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