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Daily analysis and trading strategies 10-12-09

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 October 12, 2009 – 5:59 am GMT | Post a comment |

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EURUSD

Trading strategy: stand aside

Short term sentiment remains positive despite Friday’s minor pullback to 1.4675 but the intra-day charts show signs of weakness since falling below 1.4750 support. Therefore, a break above 1.4750/70 is needed to re-initiate the intra-day uptrend. On a potential resume of the uptrend, objectives may be set around 1.4800 and 1.4845/50 resistance levels. On the lower side, intra-day support is formed by 1.4670 backed by 1.4580/00 lower. My last EURUSD long position at 1.4710 has been closed at break even, on Friday’s extended pullback. Current exchange rate is 1.4716 @06:00 GMT

Support: 1.4700, 1.4670 and 1.4580/00
Resistance: 1.4750/70, 1.4800 and 1.4845/50

GBPUSD

Trading strategy: short at 1.5960, initial stop at 1.6020, objective at 1.5860. Adjust stop to breakeven on +30 pips (at 1.5930) if reached.

Downside pressure intensified on Friday after breaking below 1.5950/60 – former support which may provide resistance on extended gains now. Interim resistance formed by an upward trend line is formed around 1.5890 and a potential break could open 1.5950/65. Short term sentiment is bearish due to Friday’s break down below 1.5950/60. As long as the 1.5950-1.6 region provides resistance, short term momentum will remain negative, favoring further selling. Current exchange rate is 1.5858 @06:00 GMT

Support: 1.5800, 1.5750 and 1.5700
Resistance: 1.5890/00, 1.5950/65 and 1.6000

The performance statement has been updated. 
Have a great day!