Wednesday July 13, 2005 - 09:12:02 GMT
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Majors stop their advance in front of key resistances
Good morning everyone from FXstreet.com. Crude Oil re-gains momentum amidst fears of supply interrumptions in the caribbean area due to heavy storms.
Forex Technicals at a glance
Dollar sell-off halted just in front of some key resistances. The Euro hit the 1.2250 resistance quite easily, blowing some stops throughout the way, but failed to clear that level and went back down below 1.22. GBP tried to cope with the 1.78 level, but that was too much at this time (after an almost 500 pip rally in 2 sessions), and as it was broadly expected, the pair broke down the 1.77 level again in both profit taking and new short positions opening. The Swiss Franc also tried to hit some major levels and break below the 1.27 figure, but wasn’t unable to do so and pair is trading back to around the 1.28 level.
Point of View:Better safe than sorry. If you look at the past trading sessions, with lots of volatility and spikes in both directions, it is much better to be out than in the market, and only wish “what would’ve happened if I had been in...” rather than wish “..if I had just stayed out of the market”. Low-mid volatility pairs, like eur/chf, eur/gbp, aud/nzd, aud/cad, etc offer better stree/results ratio in current times, so they may be worth a close look.
Trading Tips:While below 0.6920, EUR/GBP has room for a drop. Therefore, current levels offer a very good risk/reward trade.
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