EURUSD
Trading strategy: stand aside
The euro currently trades into the lower territory after dropping yesterday, ahead of today’s NFP data release at 13:30 GMT which is widely expected to print a dollar positive figure, hence the current downside pressure noticed in EURUSD. Intra-day support around the 1.4300 handle is being tested and a potential breakdown may lead to extended losses against the buck all the way down to 1.4220/40 which is a notable support zone formed by December’s bottom along with the 200 days MA coming at 1.4240. Downside is favored for now and unless the market will digest the unemployment figures as highly dollar negative – the euro will most likely meet strong selling demand. In case of a recovery, resistance may limit gains into the 1.4360/70 region, then higher – around 1.4450, ultimately 1.4500 which is the upper band of the minor bullish channel formed by the ongoing consolidation. Current exchange rate is 1.4308 @07:20 GMT
Support: 1.4300, 1.4220/40 and 1.4170
Resistance: 1.4360/70, 1.4450 and 1.4500
Market sentiment: long term – bullish, medium term – slightly bullish, short term – neutral, intra-day – bearish
- EURUSD 4hrs chart 1-8-2010
NZDUSD
Trading strategy: small long at .7210, stop at .7170 (0.5% risk), objective at .7260
Intra-day sentiment is currently bearish due to the corrective move initiated on yesterday – support at .7300 holding, so far. A potential continuation of yesterday’s drop could bring the .7200 handle in focus later today, and it is important to hold above the said barrier, in a short-term perspective not affecting the current uptrend. On the upside, intra-day resistance starts around .7350 and a break above that would confirm the end of current retracement to .7300. Current exchange rate is .7303 @07:20 GMT
Support: .7280/00, .7250/55 and .7200
Resistance: .7350, .7400, .7430/50 and .7500
Market sentiment: long term – bullish, medium term – bullish, short term – bullish, intra-day – bearish
- NZDUSD daily chart 1-8-2010
I might post an update after the NFP release, if market reaction will be interesting enough. Have a great day and a wonderful weekend!
