Tuesday, August 18, 2009

EUR/USD AUG 18th


The pair is trading @ 1.4119; yesterday it went down to 1.4040 from 1.4200; yesterday was another day where the stock market went down and the crude oil also; risk aversion made the dollar stronger than other currencies; this morning the Asian markets where flat, that mean that the worse is not gone, and the probability we are going to touch a new bottom are growing, the dollar in that case might get really strong and 1.25 should be the real target. Right now on the 4h chart the pair is trading in the lower bollinger band, below the EMA, RSI is @ 40; the stochastic is pointing up, but looks more like a retracement. If today the pair will fail to go above 1.4198, it should start a bearish period with strong support in area 1.3800-1.3737;

here are support and resistance for today:

R3 1.4454; R2 1.4288; R1 1.4203; S1 1.4037; S2 1.3856; S3 1.3790;

my trading plan:

sell now @ 1.4125;

if it goes up, sell again @ 1.4153-1.4175 (try to capture a good sell in that area)

stop loss @ 1.4203, or few pips higher, need to have 1.4198 passed;

target 1.40 or lower (during the day this target may change and it might also be convenient to close the position @ 1.4050 for example, just follow the evolution of the day).

have a good trading day

:D

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