Daily analysis and trading strategies 10-20-09

EURUSD

Trading strategy: short at 1.5060, initial stop at 1.5120, objective at 1.4960. Adjust stop to breakeven on +30 pips (at 1.5030) if reached

The euro rose to a fresh high at 1.4993 – a few points below the 1.5 barrier. Current pullback is modest and a re-test of the 1.5000 within the coming sessions is likely. If dollar’s weakness will extend past 1.5000, next upside barriers will come into play at 1.5050/70 and 1.5100. On the downside, the euro is supported by 1.4950 on first place, backed by 1.4890/00 and 1.4820 lower. Upside is favored for now and both intra-day and short-term studies are positive. Current exchange rate is 1.4975 @05:33 GMT

Support: 1.4950, 1.4890/00 and 1.4820
Resistance: 1.5000, 1.5050/70 and 1.5100

GBPUSD

Trading strategy: stand aside

The downtrend channel’s resistance around 1.6400 has been reached and provides resistance for now but odds seem to favor a break out. In case of one, next objective comes at 1.6500/30 – 1.6530 being formed by the 61.8% retracement of the whole 1.7040-1.5705 move. Below current trading region, support is seen at 1.6300 backed by 1.6230/50 and 1.6120/50. Current exchange rate is 1.6399 @05:33 GMT

Support: 1.6300, 1.6230/50 and 1.6120/50
Resistance: 1.6400/30, 1.6500/30 and 1.6600

I will probably get back a bit later today with an update report. Have a great day!

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Post tags: EURUSD