Thursday

Daily analysis and trading strategies 09-10-09

by LiviucloseAuthor: Liviu Name: Liviu Flesar
Site: http://www.innerfx.com
About: I am an independant currency trader providing currency market analysis mainly for two reasons: 1. to improve my discipline, keeping a clear track record of my own thoughts, analyzing both my good and bad expectations on market moves; 2. sharing my thoughts with other traders, hoping they may benefit from my opinions and experience. I don't call myself a veteran or trading guru of some sort as there's a lot more I have to learn, a lot more I have to see and my 8 years experience into currency trading is not enough proof that I will be successful during the next 8 years. I dare to believe that my articles are useful to many traders from around the world and I strive to improve in my attempt to become a better and more accurate writer. innerfx.com is my own project, a blog about currency trading where I share my commentaries and market thoughts. The site has been launched to address the needs of other currency traders and also to keep a track record of my articles. I am not fully dedicated to currency trading because I want to diversify my knowledge, therefore I am involved in different areas.See Authors Posts (1403) on September 10, 2009 – 5:58 am GMT | 3 Comments |

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EURUSD

Trading strategy: stand aside

The euro holds gains against the dollar not far below the 1.4600 handle, the new YTD high which has been reached on yesterday. Upside remains favored and potential pullbacks should face support into the 1.4500/30 region then lower, at 1.4430/50 where a more notable support is formed. On the upside, 1.4600 provides minor resistance while more important barriers are emerging at 1.4620 and 1.4720. A potential break above 1.4620 will provide a highly bullish confirmation on the longer term trend. Although I’m bullish on the EUR, I suspect that 1.4620 will provide a reversal point for at least 200 points correction but time will tell. Keep an eye on that level if we get there today. Intra-day sentiment is also positive. Current exchange rate is 1.4580 @06:00 GMT

Support: 1.4535/50, 1.4500 and 1.4430/50
Resistance: 1.4600, 1.4620, 1.4700 and 1.4700

GBPUSD

Trading strategy: short at 1.6690, initial stop at 1.6740, objective at 1.6600. Adjust stop to breakeven on +30 pips (at 1.6660) if reached

Cable holds steady ahead of today’s Interest Rate Decision in the U.K. at 12:00 GMT – the rate is expected to remain unchanged, at .50%. First important resistance comes at 1.5675 – formed by the median retracement of the last down leg from 1.7040 to 1.6110. Above 1.5675, next notable resistance comes at 1.6685 – the 61.8% retracement of the mentioned down leg. On the downside, support is emerging at 1.6500 backed by 1.6450/65 and 1.6400. Both short-term and intra-day studies are bullish. Current exchange rate is 1.6554 @06:00 GMT

Support: 1.6500, 1.6450/65 and 1.6400
Resistance: 1.6575, 1.6685/00 and 1.6750

USDJPY

Trading strategy: short at 93.00, initial stop at 93.40, objective at 92.50. Adjust stop to breakeven on +25 pips (at 92.75) if reached

Price has spiked below 92.00 on yesterday’s dollar decline which tries to recover at the time of writing this. First intra-day resistance is formed around 92.25/30 followed by 92.50/65 and 93.00. Extended gains may bring the downward trend line marked on the attached 4-hrs chart below on focus. A break above the mentioned trend line is needed to signal a change in short-term’s trend but it will be quite hard to advance too far above 93.00 while downtrend is so strong. Current exchange rate is 92.12 @06:00 GMT

Support: 92.00, 91.50/65 and 91.00
Resistance: 92.25/30, 92.50/65 and 93.00/25

Have a great day and happy trading!