EURUSD
Trading strategy: long at 1.4805 on break of 1.4800 (hourly bar/candle close above 1.4800), initial stop at 1.4745, objective at 1.4895.
Friday’s losses have been recovered on yesterday and the upside is under pressure once again, first intra-day barrier being formed by the 1.4800 handle. Today’s ZEW Economic Sentiment report released in Germany may favor a break above 1.4800, if the reading comes better than expected. On the downside, potential pullbacks could find support into the 1.4670-1.4700 region, backed by 1.4600/25 which is a more notable barrier on short-term basis. Momentum studies are positive on both intra-day and short-term charts, therefore the upper territory is likely to remain favored – bullish objectives being set above recent top at 1.4845. Below 1.4700 would change bias. Current exchange rate is 1.4784 @06:05 GMT
Support: 1.4700, 1.4600/25 and 1.4550
Resistance: 1.4800, 1.4845/50 and 1.4900
- EURUSD daily chart 10-13-2009
GBPUSD
Trading strategy: stand aside
Friday’s decline resumed on yesterday and a fresh 5 months low has been reached at 1.5725. The break down below 1.5800 suggests further GBP weakness against the dollar. In case of a potential recovery above 1.5800, resistance levels are eyed around 1.5900 then higher – at 1.6000. A breach above 1.6100 is needed to confirm a resume of the uptrend, therefore the downside is likely to remain favored for now, especially while the pound trades near multi-month record lows such as 1.5725. Current exchange rate is 1.5792 @06:05 GMT
Support: 1.5725, 1.5650 and 1.5600
Resistance: 1.5800, 1.5900, 1.5950/65 and 1.6000
- GBPUSD daily chart 10-13-2009
USDJPY
Trading strategy: short at 90.90, initial stop at 91.40, objective at 90.30. Adjust stop to breakeven on +25 pips (at 90.65) if reached
Although downside is highly favored and downtrend is quite strong, there are some signs of dollar’s recovery which may extend further above the 90.00 mark. As seen on the chart below, a breakout of the falling trend line coming from97.75 is underway – 90.80 being the first upside objective above the 90.00 handle. On the downside, support is emerging at 89.50 backed by 89.00 and 88.00. Current exchange rate is 89.96 @06:05 GMT
Support: 89.50, 89.00 and 88.00
Resistance: 90.25, 90.80/00 and 91.25/50
- USDJPY daily chart 10-13-2009
Have a great day!
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