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Daily analysis and trading strategies 10-09-09

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 (1400) on October 9, 2009 – 6:01 am GMT | 1 Comment |

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EURUSD

Trading strategy: stand aside

Yesterday’s gains against the dollar have been limited into the 1.4800/20 region and Bernanke’s speech has sent the euro a bit lower, testing support on the 1.4700 handle. Short term sentiment remains positive while the intra-day charts are slightly bearish, a breach above 1.4750 being needed to signal a change in hourly sentiment. My long entry at 1.4710 has been triggered overnight and I plan to hold the position with stop at break-even(which will probably be reached soon as downside pressure seem quite high) and objective at 1.4810. In case of extended losses below the support at 1.4700, next downside barrier is emerging at 1.4650 then lower at 1.4600/10. Current exchange rate is 1.4726 @06:00 GMT

Support: 1.4700, 1.4650 and 1.4600/10
Resistance: 1.4750/60, 1.4800/20 and 1.4845/50

GBPUSD

Trading strategy: long at 1.6060 on break of 1.6050 (hourly bar/candle close above 1.6050), initial stop at 1.6000, objective at 1.6140. Adjust stop to breakeven on +30 pips (at 1.6090) if reached

Cable managed to recover some of its recent gains but the 1.6100-1.6130 resistance region has limited yesterday’s gains. Current pullback into the 1.6000 zone could be corrective only, therefore uptrend may resume. A break above 1.6100/30 would confirm the short-term uptrend’s resumption so keep an eye on that region. Current exchange rate is 1.6025 @06:00 GMT

Support: 1.6000, 1.5900 and 1.5800
Resistance: 1.6100/30, 1.6200 and 1.6300

AUDUSD

Trading strategy: stand aside

The .9100 resistance has provided a temporary reversal point on yesterday but my short entry at .9195 has been missed by 5 points therefore missing a good trade opportunity. Intra-day sentiment is currently bearish but the short-term momentum remains highly positive. Potential losses extended below the .9000 mark will most likely be treated as fresh buying opportunities. Support backs .9000 at .8950 and .8870 while on the upside, the same .9100 stands valid as an important barrier. Current exchange rate is .9030 @06:00 GMT

Support: .9000, .8950 and .8870
Resistance: .9100, .9150 and .9200