Daily analysis and trading strategies 12-02-09

Quote of the day: It is your attitude, not your aptitude, that determines your altitude. — Zig Ziglar

EURUSD

Trading strategy: long at 1.5045, stop at 1.4995 (1% risk), 1st objective at 1.5095, 2nd objective at 1.5145

The euro is trading higher as the dollar weakness intensified across the board. Both short-term and intra-day studies are bullish since the euro is orbiting around the 1.5100 handle and potential dips will probably meet strong buying interest into the 1.5000-1.5050 region support region. Below that, there’s the 1.4950/75 support later which is backed by the more notable bottom into the 1.4850 zone. Anyway, since the euro maintains a bullish stance, but consolidating near ytd highs, it’s clear enough that the upside has not been rejected therefore there’s more to come. Looking at current charts – a breach higher towards the 1.52 region seem more favored than a pullback to 1.49. Current exchange rate is 1.5088 @07:00 GMT

Support: 1.5050, 1.5000, 1.4950/75 and 1.4850/00
Resistance: 1.5145/50, 1.5200 and 1.5250

GBPUSD

Trading strategy: stand aside

Cable reached a trend line resistance on yesterday’s recovery and is currently pulling back a little. The said trend line is coming from 1.6870 as seen in the chart below. Despite yesterday’s recovery of 255 points, a confirmation of uptrend resumption is lacking, the short-term studies are still bearish and the 4hrs are printing lower highs. First – a break above the mentioned trend line around 1.6635 is needed and 2nd – a sustained break (preferably daily close) above 1.6700 would negate the bearish bias. Current exchange rate is 1.6584 @07:00 GMT

Support: 1.6520/50, 1.6480/90, 1.6400 and 1.6300
Resistance: 1.6635/50, 1.6700/20 and 1.6800

NZDUSD

Trading strategy: stand aside

The rising trend line which provided a stable support on a longer term basis now forms a barrier on the upside into the .7270/80 region. A breach above .7300 would signal the end of the corrective cycle to .7025, resuming uptrend – hence focusing into the .7400-.7500 region in first phase. On the downside, potential pullbacks may face support into the .7200 region, then lower – around .7125. Intra-day sentiment is slightly bullish. My trading strategy to sell @.7270 has turned into a neutral trade as the pair is at rest since reaching this region. Current exchange rate is .7271 @07:00 GMT

Support: .7240/50, .7200, .7125 and .7025/50
Resistance:  .7300, .7350 and .7400

Have a great day and happy trading!

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Post tags: EURUSD, GBPUSD, NZDUSD