Tuesday

Daily analysis and trading strategies 11-24-09by Liviu

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Quote of the day: Investors have very short memories. — Roman Abramovich

EURUSD

Trading strategy: stand aside

Range-bound trading below the 1.5000 handle, supported by 1.4850 bottom, continues – the euro facing a strong resistance into the 1.5000 region once again, on yesterday. Intra-day sentiment is bearish as price pulls back from the higher half of the 1.49 region, not being able to hold gains above 1.4950 which became support after yesterday’s rally. Next support comes at 1.4900 – the 50% retracement of 1.4800-1.5000, backed by the more notable bottom into the 1.4850 region. If 1.4875-1.4900 will hold on current pullback, then the bulls will have another chance to bring the 1.5 mark in focus. Current exchange rate is 1.4930 @07:03 GMT

Support: 1.4900, 1.4875, 1.4850 and 1.4800
Resistance: 1.4950, 1.5000/15, 1.5050/60 and 1.5100/15

GBPUSD

Trading strategy: small long at 1.6605, stop at 1.6545, 1st objective at 1.6665, 2nd objective at 1.6725

Intra-day support levels formed by the retracement ratios of yesterday’s up leg – at 1.6560 and 1.6540 are under pressure at the time of writing this. Short term bias points to the downside and selling pressure will probably limit the upside in case of rallies. A break above 1.6700 is needed to confirm the end of this retracement but until reaching that elevated resistance – 1.6600 is also expected to provide an upside barrier. On the lower side, support is emerging at 1.6495/00 and 1.6400. Current exchange rate is 1.6550 @07:03 GMT

Support: 1.6540, 1.6495/00 and 1.6400
Resistance: 1.6600, 1.6650 and 1.6700

NZDUSD

Trading strategy: stand aside

Intra-day downside pressure intensifies, clearing an important percent of yesterday’s gains. Until eventually breaking above .7400, short-term momentum will remain weak – encouraging further selling. Support is formed into the .7200-.7220 region by the rising trend line coming from .6475 along with the recent bottom (Friday’s and yesterday’s low). A break down below the said support would be an important bearish confirmation – aiming back into September’s trading region – below October and November monthly open prices. Current exchange rate is .7250 @07:03 GMT

Support: .7200, .7150 and .7100
Resistance: .7300, .7350 and .7400

Have a great day!