EUR/USD Hovering around 1.2700 Level

February 1, 2009

As seen in the chart below EUR/USD is currently trading at 1.2730, 30 pips above the 1.2700 level. Euro is making a steady decent in the last couple of days reaching early December lows. If the 1.2700 support is broken and stops will be tripped we should see a small rally leading to a further decline. One of the fundumental reasons for euro’s weakness is the PPI report which will come out on Tuesday. It is expected to show that European producer prices slid for a fifth month, giving the ECB central bank another reason to cut interest rates.

Today’s Strategy Sell rally off the 1.2700 level, place a stop at 1.2740 and a limit at 1.2622. (Results will be posted in the comments section after the trade is closed)

EUR/USD February 01, 2009 Chart

Posted by forexsource under Daily Trading Strategy |