So it happened that the euro went to touch his day low on Libya unrest, and than recovered something like 180 pips as some ECB officials start talking about the opportunity to rise interest rate to avoid inflation. I am not sure this is real, an increase of the interest rates now may affect negatively the so called PIGS. Gaddafi had a speech on TV and was a really aggressive one, as he stressed that will not step down, and prefer to die as a martyr.
Technically we are trading on the upper bollinger band and I see the RSI in overbought.
Right now we are trading @ 1.3722, it is a really interesting level, as I believe we have a strong resistance in this area up to 1.3750. If the market learn to trade the facts and avoid the rumors well it will go down to 1.3550 area again. On the other side a possible break over 1.3750 will target 1.4000 and 1.4270 will be next.
Here are some support and resistance:
| R4 1.4207; R3 1.4019; R2 1.3831; R1 1.3762; S1 1.3574; S2 1.3455; S3 1.3267; S4 1.3079. |
So I would sell here with a stop loss at 1.3762 (clear break of 1.3720-1.3750 area)
target 1.3574
Happy trading to everybody
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