Tuesday, February 1, 2011

EUR/USD on 1-Feb-2011

Quick update on EUR/USD:

On Sunday our regular weekly FX forecast, we mentioned to:
Many signs of EUR/USD reversal.. pick short when EUR/USD come up to 1.3680.
for a healthy correction to take place, this reversal will find its support at 1.3480, major support at 1.3330.

Position trade: Short 1.3680, SL 1.3710, TG 1.3480.

Intraday Long at 1.3573 SL 1.3533 TG 1.3680. This order must be cancelled if there's no price movement until midday (GMT+8).
Overhead resistance 1.3750-800, if EUR/USD break above this level, then it will continue go north again with our target 1.4030.

However, for the intraday Long trade, I planned, but I didn't put the order in.
It is a very good trade, lowest EUR/USD go is 1.3568 (entry 573, -5 pips lowest).
If we followed this trade we would have bring +107 pips home (take profit at 1.3680).

In fact, EUR/USD surged to 1.3738 yesterday and closed at 1.3690.

My position trade to short EUR/USD is on hold, observe the development of EUR/USD consolidation.  EUR/USD might go ahead to test the double top at 1.3750-800 region today, if it breaks above 1.38, then I would abandon short.

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