Printer Friendly

Euro / US Dollar: Prices Break Channel Support, Signal Short Entry.

The Euro has been trending higher against the US Dollar along with an overall resurgence in risk appetite since putting in a double bottom in early March. Prices now look to have established a medium-term top, putting in a Dark Cloud Cover bearish reversal candlestick formation and following through with a close below support at the lower boundary of a rising channel that has guided price action higher since late April. We will enter short from here, initially targeting the previous swing bottom below 1.30. Importantly, this will be a "soft" target, meaning we will look for this to be the next important juncture but refrain from setting a firm take-profit order at this level, looking for the pair to sink substantially lower to break below the double bottom at 1.2454. A stop-loss will be activated on a daily close above the 06/03/09 wick high at 1.4340.

2009 Al Bawaba (Albawaba.com)

Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2009 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Date:Jun 8, 2009
Words:165
Previous Article:Gulf family companies begin to suffer the economic downturn.
Next Article:Japan's Current Account Surplus Shrinks as Exports Tumble.
Topics:


Related Articles
US Dollar Forecast to Rally Against Euro According to System Trading Signals.
Euro/US Dollar Exchange Rate Tumbles on ECB, Fed Interest Rate Forecasts.
US Dollar Extends Gains, Yields Over 750 Pips.
Euro Unlikely To Sustain Gains Against the US Dollar, Selling Opportunity Ahead.
Euro On Verge of Crossing The Rubicon, At Support Against Dollar (Chart).
Euro Breaks Support Against Dollar, But Temporary Pullback a Possibility.
US Dollar Positioning Mixed Against Forex Majors.
British Pound Short Hits Initial Target, Canadian Dollar Sold.
Canadian Dollar Reaches Measured Objective Above 1.0300.
British Pound Retraces, Euro Grapples with 1.50 Against US Dollar.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters