FOREX SIGNAL FOR EURUSD, 22ND MAY, 2009

Trade Idea: Sell EUR/USD at 1.4050

Our trading strategy is: Sell at 1.4050, Target :1.3920, Stop-loss : 1.4100
The single currency easily met our upside target at 1.3840 (our long position was entered at 1.3730 and made 110 points profit) yesterday's in late New York trading and euro then rallied to a 4-month high of 1.4030 today, however, as recent upmove is losing near term rising momentum, upside is likely to be limited to 1.4050/60 and risk is getting higher and higher for a minor correction to take place partly due to the long weekend (U.S. and U.K. markets will be closed on Monday due to holiday).
In view of this, we would prefer to stand aside in the meantime and one can look to turn short on euro when price approaches 1.4050 level and price shall falter well below 1.4100 today.
On the downside, below 1.3940/50 would signal a temporary top is possibly in place and correction to 1.3900 would follow, however, reckon renewed buying interest would emerge well above 1.3820/30 and euro may head north again next week.