Wednesday

Daily analysis and trading strategies 10-07-09by Liviu

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EURUSD

Trading strategy: stand aside

The euro continues to achieve higher highs on the current recovery process, aiming towards the recent top side at 1.4845. Short-term sentiment is slightly bullish but the intra-day studies show minor signs of weakness. In case of an extended pullback below overnight’s low at 1.4683, look for support into the 1.4620-1.4650 zone, eventually 1.4600. On the upside, minor resistance is formed at 1.4760 followed by 1.4800 and the recent top at 1.4845. Current exchange rate is 1.4710 @06:10 GMT

Support: 1.4620/50, 1.4600 and 1.4550. 
Resistance: 1.4750/60, 1.4800 and 1.4820/50

GBPUSD

Trading strategy: stand aside

The minor recovery attempts during the last few days have found solid selling pressure, hence the downside is under renewed pressure – now trading around 1.5870. Support is formed by the 1.5800 handle and 1.5720, lower. Both short-term and intra-day studies are negative and a short-term change in momentum would be signaled only by breaking above 1.6100/30. Downside is favored for now. Current exchange rate is 1.5875 @06:10 GMT

Support: 1.5800, 1.5720/50 and 1.5650
Resistance: 1.5900, 1.5950, 1.6000 and 1.6050

AUDUSD

Trading strategy: long at .8850, initial stop at .8790, objective at .8950. Adjust stop to breakeven on +30 pips (at .8880) if reached

Fresh upside territory has been reached by the Aussie dollar due to yesterday’s rate hike to 3.25% which signals a vote of confidence in a global recovery. The long-term upward trend line (mentioned on my last medium term analysis in September 09) into the .8700 zone has been broken, providing a key confirmation of current uptrend. The .9000 psychological level is the next upside objective and we may get there soon if short-term support into the .8780/00 region will hold on potential pullbacks. Until eventually reaching .8780 on pullbacks, minor support is formed into the .8820/40 region and may, as well, limit the downside for now, providing a good buying level. Current exchange rate is .8905 @06:10 GMT

Support: .8820/40, .8780/00 and .8700
Resistance: .8920/50, .9000 and .9050

Have a great day and happy trading!