| EURUSD 05-03-10 |
EURUSD
Despite the encouraging uptake of Greek debt this week, EURUSD is still finding it heavy going –and who can blame it after Moody’s latest downgrade of Deutsche Bank by two notches to AA1/C+. Now, the pair has slumped right back into its range territory below 1.3600, and notably, the price action in the past two days has carved out a bearish engulfing candlestick pattern on the daily chart; a formation that tends to suggest the bulls have been exhausted by the bears, and further selling interest is likely to push the pair lower in subsequent sessions.
The shadow of non-farm payrolls on the horizon means participation is probably going to be excruciatingly light this morning, so range trading will be the most rewarding strategy to pursue ahead of the release. Some support expected to come in around 1.3550, and sellers lurk around 1.3625 so we would use these levels to guide our short term trade entry.
The bigger picture technical levels remain intact either side of today’s mini-range; on the topside 1.3700 -30 was the zone where we stalled last time, and above there the 1.3800 fibonacci level (50% retracement of 1.2457-1.5145). On the downside, 1.3425-44 area is the main cushion of bids ahead of 1.3090.
Despite the encouraging uptake of Greek debt this week, EURUSD is still finding it heavy going –and who can blame it after Moody’s latest downgrade of Deutsche Bank by two notches to AA1/C+. Now, the pair has slumped right back into its range territory below 1.3600, and notably, the price action in the past two days has carved out a bearish engulfing candlestick pattern on the daily chart; a formation that tends to suggest the bulls have been exhausted by the bears, and further selling interest is likely to push the pair lower in subsequent sessions.
The shadow of non-farm payrolls on the horizon means participation is probably going to be excruciatingly light this morning, so range trading will be the most rewarding strategy to pursue ahead of the release. Some support expected to come in around 1.3550, and sellers lurk around 1.3625 so we would use these levels to guide our short term trade entry.
The bigger picture technical levels remain intact either side of today’s mini-range; on the topside 1.3700 -30 was the zone where we stalled last time, and above there the 1.3800 fibonacci level (50% retracement of 1.2457-1.5145). On the downside, 1.3425-44 area is the main cushion of bids ahead of 1.3090.
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