The Advisor Weblog

Posted: 14 Jul 2011 03:27 AM PDT

Hi everyone! Summer is well summer. We know we hardly see a clear trend developing in July, and August I would expect to be even worse. Wild volatility seen these last days and hectic market movements won't settle soon. If we also add the sovereign debt woes in the euro zone, and last strike to the US, after Moody's put the country on review for possible downgrade (the country has reached its debt ceiling, and lawmakers need to agree to extend it) I would strongly suggest to trade short term, and don't spend too much time looking for a trend that's not yet really there.

The EUR/USD has managed to fill the weekly opening gap, and now rests above the 61.8% retracement of last daily slide, @ 1.4150 immediate support zone. 4 hours chart shows momentum still strong and heading higher so unless a clear break of the level, the bullish potential is there. Next support comes at 1.4110. To the upside, pair needs to settle at least above 1.4225, to extend gains first towards the 1.4280 daily high and later near 1.4310, 200 EMA in this 4 hours chart.

Here is the link for today's calendar: