We talked about US trade deficit and budget deficit last round...
Similarly, while EURO posted 1.4939 against US Dollar, it is definitely not desirable for EU companies - their goods cost more to other countries!
EUR/USD
EUR/USD striked at the high of 1.4939 on 4/5/2011, then the day after this high, EURO currency become volatile* and going through a merciless correction.
*Volatile: Average True Range increased from 120, 150, and now above 200 in 7 trading days.
Last week, EUR/USD settles at 1.4107, we do not see much support that can hold the market up, it is very possible that EUR/USD continue to fall towards 1.3900 in coming week.
My trade for next week is to aggressively aim for short at 1.4150 (50 pips away) and target to close my position when it reach 1.3900-1.3850 region.
We should be able to see sign of pick up towards end of the week.
I am expecting EUR/USD to form a weekly Doji candlestick pattern, taking profit on Wednesday night would be preferred.
Notable events for EUR/USD currency:
MY/SG time (GMT+8)
Monday 16 May @ 9pm Fed Chairman Bernanke Speaks and TIC Long Term Purchase.
Tuesday 17 May @ 5pm German ZEW Economic Sentiment
Thursday 19 May @ 2am (Wednesday midnight) US FOMC Meeting Minutes
as usual Thursday night 8:30pm Unemployment claims in US.
Trade Setup EUR/USD for 16-May-2011 to 20-May-2011:
Short 1.4150 - 1.4200
Stop Loss 30 pips
Target 1.3900 - 1.3850 / exit mid of week.
No comments:
Post a Comment