Tuesday, May 19, 2009

May 19th EUR/USD analysis and opportunities

Yesterday the rate moved from a min @ 1.3469 to a max @ 1.3569; it close at it's max.
early this morning there was a small correction almost 23%, so I would consider that we didn't had any since this movement up started;
right now this movement up may be seen as a 70% correction of last friday bearish movement; 1.3600 is also a good support; psycologic and because it was the max of the last retracement in friday trend.

some support and resistence: R1 1.3502; R21.3435; S1 1.3602; S3 1.3635

It seems really difficult that the rate will go further over 1.3600; once there the possibility it will fail to break it are high enough to bet on a retracement.

here is my trading plan:
I sell 2x units of EUR/USD right now @ 1.3594; stop loss @ 1.3630 (apparently tight but rappresent the event that 1.3600 will be passed);
I will by back 1x unit @1.3540;
I will buy back 1x unit @ 1.3480;
I do not see for today the possibility to go lower than 1.3420

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