EUR/USD: Downside Limited By 1.3640/26 Support
Carol Harmer | May 15, 2014 06:36AM ET
Euros have come lower, breaking 1.3664. Now at the moment the market is looking to be a little oversold on the short term charts. So we would expect any downside to be limited by the 1.3640/26 support. This comes from the 200 day M/A and this is a crucial level and not to be ignored.
We would expect buyers in at these lows, looking to hold the market. Stops can be quite tight as we would leave them below the 76. 4 med term fib located at 1.3592. So you see this is a good risk / reward trade.
Now let's assume that the market holds there is a good chance then that we will try once more for 1.3720/25. If broken, watch for 1.3770 where we would cover all longs.
Attempt small shorts but again leave tight stops in the market.
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