Daily analysis and trading strategies 11-16-09

Quote of the day: Every once in a while, the market does something so stupid it takes your breath away. – Jim Cramer

EURUSD

Trading strategy: long at 1.4930, stop at 1.4870 (1% risk), 1st objective at 1.4980, 2nd objective at 1.5030.

The euro is grinding higher today, extending Friday’s gains into the 2nd half of the 1.49 area. Both short term and intra-day charts are plotting positive momentum as the euro managed to breach above the 50% retracement level of the down leg from 1.5045 to 1.4820 – at 1.4935 and 61.8% respectively at 1.4960. Former intra-day resistance layer into the 1.4910/35 region provides the first support today and may limit downside price action, keeping the uptrend intact. Below the said support, bias returns into the bears’ advantage. Current exchange rate is 1.4977 @07:20 GMT

Support: 1.4910/35, 1.4820/50 and 1.4750
Resistance: 1.5000, 1.5020/60 and 1.5100/15

GBPUSD

Trading strategy: stand aside

Cable also recovered on Friday, reversing below 1.6650. Friday’s decline below 1.6650 has caused a false breakdown, getting my small short position triggered, which was a bad trade (but fortunately only 0.5% risk) as sterling switched direction, re-testing 1.6700 in the late US session. Upside is back in focus today and next objectives are seen into the recent top side between 1.4800 and 1.4840, but until getting that high – keep an eye on the 1.6730 resistance region which is being tested at the time of writing this – a minor resistance is formed here by the falling trend line coming from 1.6840 through 1.6795. Both short-term and intra-day studies are bullish, upside being favored for now. Current exchange rate is 1.6738 @07:20 GMT

Support: 1.6700, 1.6620/50, 1.6600 and 1.6500
Resistance: 1.6730/50, 1.6800, 1.6830/50 and 1.6900

NZDUSD

Trading strategy: long at .7375, stop at .7325 (1% risk), 1st objective at .7425, 2nd objective at .7475.

Last week’s top side into the .7450 zone is under pressure as kiwi bounced off support into the .7300 zone – formed by the rising trend line coming from .7080 as seen in the chart below. Both intra-day and short-term studies are bullish and potential pullbacks into the .7360-.7400 zone will be fresh buying opportunities, as upside is likely to remain favored as long as .7300 holds. Current exchange rate is .7437 @07:20 GMT

Support: .7400, .7350/60 and .7300
Resistance: .7450, .7500 and .7550

Have a great day!

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Post tags: EURUSD, GBPUSD, NZDUSD