EUR-USD trade signal july 9 2012

forex trading outlook today EUR-USD trade signal july 9 2012 : EUR declined sharply last week as the 1.2670 level turned out to be a strong resistance initially. With this decline our recent bearish stance has been justified completely. Now, the daily chart is in strong downtrend mode again and I expect to see losses twd the next Fibo level at 1.2145. Then a decline twd 1.1820 will become a real possibility.

On the upside, only a move abv the trendline shown on the chart above (currently at 1.2933) will negate the current bearish view. Of course, from a trading perspective this line is too far away from the current market. So, considering the huge decline last week, I favor lowering the stops to a breakeven.

Strategy: Holding short from 1.2600 is favored. Stop=1.2600.

Today's support: - 1.2243(main), where correction is possible. Break would give 1.2218, where correction also may be. Then follows 1.2180. Break of the latter would result in 1.2157. If a strong impulse, we would see 1.2122. Continuation will give 1.2086 and 1.2060.

Today's resistance: - 1.2420, 1.2456, 1.2513 and 1.2558(main). Break would give 1.2577, where a correction is possible. Then goes 1.2600. Break of the latter would result in 1.2628. If a strong impulse, we'd see 1.2667. Continuation will give 1.2696.

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