EURUSD
Trading strategy: long at 1.5050 on break of 1.5045 (hourly close above 1.5045), initial stop at 1.4990, objective at 1.5130. Adjust stop to breakeven on +30 pips (at 1.5080) if reached
The euro remains bid and upside pressure is quite high as the pair has reached a fresh high at 1.5060. Yesterday’s recovery in equity markets has favored the euro’s rally from the mid 1.49 region where it faced solid buying interest. Hourly price action suggests some weakness on a corrective cycle but it could be yet another chance to accumulate some bids before resuming uptrend, aiming towards the 1.5100 region. In case of extended pullbacks, support is set around 1.4940/50 backed by 1.4880/00 and 1.4820. On the upside, resistance starts at 1.5060 followed by 1.5100 and 1.5150. Current exchange rate is 1.5016 @06:07 GMT
Support: 1.4940/50, 1.4880/00 and 1.4820
Resistance: 1.5045/60, 1.5100 and 1.5150
- EURUSD 4hrs chart 10-23-2009
GBPUSD
Trading strategy: stand aside
Cable has been supported by 1.6500 on yesterday’s retracement and resumed uptrend, aiming towards the 1.6700 mark. Important resistance comes at 1.6740/50 formed by September’s top. A potential break above 1.6740/50 within the coming days would open 1.7. In case of a retracement, look for support into the same 1.6500 region. Below 1.6500, more notable support levels are emerging at 1.6400 and 1.6340/50. Current exchange rate is 1.6639 @06:07 GMT
Support: 1.6500, 1.6400 and 1.6340/50
Resistance: 1.6700, 1.6740/50 and 1.6800
- GBPUSD daily chart 10-23-2009
USDJPY
Trading strategy: short at 92.50, initial stop at 93.00, objective at 91.70. Adjust stop to breakeven on +30 pips (at 92.20) if reached
Dollar’s slow-paced recovery continues and yesterday’s high at 91.70 is being tested while writing this report. A notable barrier is seen higher, into the 92.00/10 region followed by 92.50 and 92.90/00 which is also the median retracement of the whole 97.75-88.00 decline. Extended gains are likely but strong dollar selling may emerge into the 92.00-92.50 zone. Current exchange rate is 91.60 @06:07 GMT
Support: 91.25, 90.50 and 90.00
Resistance: 91.70, 92.00/10, 92.50 and 92.90/00
- USDJPY daily chart 10-23-2009
Have a great week-end and don’t forget to provide questions and topic suggestions for the next week’s trading webinar!
