Daily Trading Strategy Report: EUR/USD 220 Pips Profit

Written By www.imperialFXonline.com

Objective Met: Short term overbought condition to limit upside potential

Time: May 10 2010, 15:09GMT

Rate: 1.2820
Strategy: Target Met
Position: Short at 1.3040

  • Near term overbought condition to limit upside around 1.3115 (previous support)
  • Below 1.2809 needed to indicate a top formation

The euro's rally today following the announcement of the 750 billion euro emergency fund has pushed the short term oscillators into overbought territory and since the rise from last week's low at 1.2523 is also somewhat over-extended, hence a mildly bearish bias is seen for a downward retracement to 1.2910/20 ahead of 1.2809, below the latter level would feel the gap made this morning but the support region of 1.2587-1.2610 should hold.

We are entering a speculative short position at 1.3040 after the retreat from 1.3093 and only a sustained move above this resistance would extend gains to 1.3160/70.

Written By www.imperialFXonline.com

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