Wednesday, August 19, 2009

EUR/USD AUG 19th


The pair is trading @ 1.4090; yesterday after reaching 1.4151 it went down to 1.4067, and than up to 1.4171; now it is back to below 1.4100. The German PPI is out, it is really negative and we do not have more news today. The Dow Jones yesterday recovered closing up 0.90%, but this morning Nikkei is down 0.79%; this is confirming the possibility of a new bottom; in that case the dollar should get really strong due to risk aversion. In the 4H chart I see the pair trading below the EMA, it is trading in the lower bollinger band; RSI is 41; the stochastic has space for a bearish movement; in the 1day chart for the first time we can see a clear bar below the EMA, if today we will never go above yesterday's high a bearish trend may start soon.

here are some support and resistance:
R3 1.4317; R2 1.4213; R1 1.4152; S1 1.4048; S2 1.4005; S3 1.3901;

my trading plan:
sell now @ 1.4101;
stop loss 1.4180 (it should be clear yesterday high is passed)
target 1.4000 area or lower

have a good trading day
:D

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