EURUSD Commentary for Wednesday | The Mesh Report

EURUSD Commentary for Wednesday

the Mesh Report Staff July 14, 2010 0

Tuesday bullish outside reversal renews the threat to strong resistance at 1.2850 and potentially 1.3075/95 into July.

The bullish move from the 13-day EMA (now at 1.2570) finally penetrated the down trend line from
the November 2009 peak through the Friday peak at 1.2725. Minimally, this strength has secured the base into mid-Q3, with an extension now likely up to challenge the 50% retracement of the erosion from March at 1.2850. A more difficult penetration of that barrier at the 61.8%
level would extend the focus to the spike high at 1.3075/95. Only below 1.2570 would hint at a top, confirmed through 1.2480. A more unexpected break below support at 1.2335 sees a more
defensive tone into late July and August.

Strategy: Long at 1.2575 for 1.2840. Stop moves to 1.2655.

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