Thursday, September 16, 2010

Short EURUSD With More To Go Here...

EURUSD broke out from the B-wave triangle I illustrated yesterday and has tested the first of two Fibonacci resistance zones. It's interesting that for so many recent sessions the Euro has significantly lagged the other major 6 currencies in terms of strength against the dollar. Check the inset quote sheet of my USD/XXX group. Today the Euro is the only currency that is actually stronger against the USD (USDJPY is flat). The start of a new Euro-zone recovery? I doubt it. I believe this price action is a gift-wrapped opportunity to sell into one-off Euro showing of strength while the USD is recovering against the other 6 majors. Watching key support in the USDX at 80.80, with invalidation below 80.08. I am short 2 units of EURUSD at 1.3110 with offers for 2 more units at 1.3175, and stops for all 4 units at 1.3215.

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