Wednesday

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

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Quote of the day: Money doesn’t make you happy. I now have $50 million, but I was just as happy when I had $48 million. — Arnold Schwarzenegger

EURUSD

Trading strategy: stand aside

Needless to say, not much happened on yesterday, as liquidity in equities was pretty low but price remained into the positive territory. The euro found bids on last minor retracement to $1.4940 and the $1.5000 handle is under renewed pressure, but the euro has yet to overcome the 1.5000-1.5060 resistance layer and a break above this region would be a significant bullish sign – opening $1.55. On the lower side, extended pullbacks may face solid resistance into the 1.4850 region – the said support corresponding to 1075 in S&P500. Short-term sentiment is bullish while intra-day studies are mixed due to the ongoing consolidation. Current exchange rate is 1.4975 @06:50 GMT

Support: 1.4940/50, 1.4900 and 1.4850
Resistance: 1.5020, 1.5050/60, 1.5100/15 and 1.5150

GBPUSD

Trading strategy: stand aside

Support on the 1.6600 handle has been challenged on yesterday as the Fitch agency said that the UK economy was at risk of losing its AAA rating. The dip has been short-lived and buyers re-newed their positions so cable recovered by rallying back into the $1.67 territory. Short-term sentiment is bullish and first intra-day support is emerging around 1.6650 – formed by a rising trend-line coming from 1.6465 of November 5th. On the upside – first intra-day barrier is seen at 1.4745/50, formed by yesterday’s close. A breach above 1.4750 would signal uptrend continuation. My long position at 1.6705 has been closed on break-even since price stalled into the mid 1.67 region. Current exchange rate is 1.6732 @06:50 GMT

Support: 1.6650, 1.6600, 1.6500 and 1.6400
Resistance: 1.6750, 1.6800/30 and 1.6900

Have a great day!