Thursday

Daily analysis and trading strategies 11-05-09by Liviu

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EURUSD

Trading strategy: long at 1.4760, initial stop at 1.4690, objective at 1.4900. Adjust stop to breakeven on +40 pips (at 1.4800) if reached

The euro recovered on yesterday ahead of FOMC and the Fed held interest rates for “an extended period” and kept trillion-dollar stimulus measures in place to support the recession recovery. Key resistance into the 1.4850 area has been challenged on yesterday and earlier today and upside is slightly favored, further buying of EUR against the buck being possible within the coming days, anticipating a return into the 1.50 region. Support starts at 1.4800 backed by 1.4700/25 and 1.4630/50. Short-term studies are neutral since the break out above 1.8500 is not clear enough and the intra-day charts are bullish. Don’t forget about today’s Interest Rate decision in Europe. Current exchange rate is 1.4828 @07:17 GMT

Support: 1.4800, 1.4700/25 and 1.4630/50
Resistance: 1.4850, 1.4900/20, 1.5000 and 1.5050/60

GBPUSD

Trading strategy: long at 1.6515, initial stop at 1.6445, objective at 1.6615. Adjust stop to breakeven on +40 pips (at 1.6555) if reached

Resistance into the 1.6550 region is intact despite yesterday’s rally near 1.6600. However, positive momentum of short-term studies favor further gains and next upside objective is seen above 1.6550 at 1.6640/50 and 1.6700. Intra-day studies are bearish and support is formed into the 1.6470-1.6500 region as seen in the intra-day chart below. As long as it holds, sterling should rebound, re-testing 1.6600 later. Else – 1.6400 and even 1.6250 are next. Current exchange rate is 1.6482 @07:17 GMT

Support: 1.6470/00, 1.6400, 1.6300 and 1.6250/60
Resistance: 1.6550, 1.6600, 1.6630/50 and 1.6700

AUDUSD

Trading strategy: stand aside

Interim resistance has been formed by .9100 ahead of .9200 which is a key short-term barrier. Support is provided by .9020/50 and a break down could renew selling to .8950/60 which is a rising trend-line coming from .8240 as seen in the daily chart below. Short-term sentiment remains bearish as a break above .9200 is needed to signal uptrend resumption. However, extended losses will be treated as fresh buying opportunities. Current exchange rate is .9053 @07:00 GMT

Support: .9020, .9000, .8950/60 and .8900
Resistance: .9100, .9150, .9200 and .9300

Have a great day!